The Deal: Europe Trades Mixed on Renewed Fears of U.S. Default

LONDON (The Deal) -- European markets were mixed in morning trading Monday, with most starting down at first on renewed fears of a U.S. debt default. Paris and Frankfurt were both down by about a quarter of a percent. But by mid-morning, London's FTSE 100 had begun to regain some confidence and was pretty much back to Friday's close. At 10 a.m. London time, the FTSE 100 stood at 6490.02

 
Some European news was good. Eurozone industrial production rose more than expected in August, while in London Royal Mail shares continued to rise after Friday's stunning IPO surge- and were up 1% by mid-morning at 459.5 pence.
 
But in Paris, computer aided design software maker Dassault Systemes took a hit after failing to meet third quarter targets and struggling car-maker PSA Peugeot Citroen fell on news that it was once again seeking a partner for investment. There's been speculation it wants to sell a stake in itself to China's Dongfeng.
 
Italy bucked the trend again as fears of political meltdown there continue to recede, and agreement on a deal for the ailing national airline Alitalia late Friday at least helped give the impression the government could still take decisions. Ironically, Italy appeared to be the one European investors trusted more than the U.S. But by mid-morning, even Milan had fallen again to roughly where it was on Friday.
 
Japan and Hong Kong were closed for public holidays Monday.

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