LONDON -- European markets held up well in early trading Tuesday, despite bad news from the banking sector around the region. This was led by Switzerland's UBS (UBS) -- which has been told temporarily to hold more capital because of pending litigation and compliance issues. Germany's Deutsche Bank (DB) also said it took an unexpectedly high $1.65 billion litigation charge. Together with a slowdown in its trading business, that brought Deutsche's profits down by a huge 94% to about $56 million. Britain's Lloyds Bank (LYG) also reported a loss.
Nevertheless, other news was better. Good results from oil major BP (BP) helped sustain London's FTSE 100, which was up around 0.3% in early trading, while Frankfurt's DAX Xetra and Paris's CAC 40 were both up in by mid morning.
In the Far East, the Nikkei 225 closed down almost 0.5% at 14,325.98. That was despite good figures on employment and industrial output which pushed up the yen, and so dampened export prospects.
Shanghai was down 0.22% at 2128.86, but Hong Kong's Hang Seng index was up 0.18% at 22,846.54.
But some real market moving news in India: The central bank there put up the main policy rate 25 basis points to 7.75% as a push-back against inflation. That helped stabilize the rupee and pushed up the Bombay markets.