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Europe down at midday
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August 17, 1999: 8:16 a.m. ET
Markets poised to accelerate decline as U.S. inflation data awaited
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LONDON (CNNfn) - European markets were poised to extend midday losses Tuesday, with analysts warning that the early slide would accelerate if U.S. inflation data due later in the day indicated a shift towards sharply higher interest rates this year.
However, U.S. markets remained optimistic that the July consumer price index data -- the last major indicator before next week's meeting of Federal Reserve policy-makers, would come in as expected with a 0.3 percent rise.
The FTSE 100 in London was hit hardest, losing 51 points, or 0.82 percent, to 6,184.5 as index heavyweights endured selling pressure and buyers stayed away.
The Xetra Dax index in Frankfurt lost 22 points, or 0.42 percent, at 5,235.06, while Paris' CAC 40 slipped back 30 points, or 0.66 percent, to 4,429.15 after erasing an early gain.
Smaller markets were a little firmer. The SMI in Zurich was off 0.19 percent at 6,975.3 while Amsterdam advanced 0.56 percent and Milan and Madrid remained in the black.
Wall Street was expected to open flat to slightly higher Tuesday, with S&P 500 futures on the Globex trading system down 2.2 at 1,337.20. Fair value for the index, which takes interest costs and dividend payments into account, was calculated at 1,335.77 in London.
The uncertainty dragged the euro towards the $1.05 level though the dollar remained weak against the yen at 114.14 yen.
The London market brushed aside a decline in domestic inflation in July as investors took gains on heavyweight stocks, with fallers outpacing advancers by three to one.
The five largest stocks on the FTSE all lost ground. British Telecommunifcations (BT.A) lost 1.9 percent and Vodafone AirTouch (VOD) was off 1.6 percent. BP Amoco (BPA) fell 1.2 percent, Shell Transport (SHEL) was down 2.3 percent and GlaxoWellcome (GLXO) dipped 1 percent.
U.K. insurer Prudential (PRU) was one of the few gainers, up 0.1 percent despite shrugging off a report that Dutch insurance and financial services giant Aegon is eyeing a bid for the firm.
Mining company Billiton (BLT) was the heaviest decliner, shedding 3.7 percent after recent strong gains on the back of several bids in the aluminum sector.
Among second-tier stocks, soft drink bottler Coca-Cola Beverages (CCB) jumped 7 percent amid reports that its planned $2.9 billion buyout by Athens-based Hellenic Bottling is nearing completion.
Frankfurt was weighed by an 8 percent slide in the construction firm Hochtief (FHOT) amid allegations that it improperly acquired sensitive information from a rival.
Engineer Linde (FLIN) slumped an additional 3.6 percent as investors continued to show their disappointment at Monday's $3.7 billion acquisition of AGA. Linde stock tumbled 5 percent Monday.
DaimlerChrysler led the gainers with a 0.8 percent advance.
In Paris, BNP (PBNP) advanced 1.8 percent as it awaits regulators' decision on its hostile bids in the French banking battle. Retailer Carrefour (PCA) was also up 1.8 percent.
Zurich was pulled lower by a downbeat first-half performance report from chemical producer Ciba, off 2.2 percent after a 3 percent drop in profit to 121 million Swiss francs ($80 million).
Financial stocks moved gently ahead, with banks such as CS Group and UBS and insurers Baloise and Swiss Re all in positive territory. 
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