European stock markets eased on Monday after sharp Friday gains while oil prices, which had tumbled before the weekend, made up a little of their lost ground.
With trade thin because London markets were closed, sterling hit a two-year low against the dollar in the aftermath of data showing a stagnant British economy in the second quarter.
Euro zone government bond yields fell sharply after a G20 finance official told Reuters the International Monetary Fund had trimmed some of its forecasts for economic growth, with the euro zone figure for 2008 cut to 1.4 percent from 1.7. percent.
Futures trading indicated Wall Street would open slightly lower, ahead of U.S. July existing homes sales data due at 10:00 a.m. EDT.
Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) was down about 10 percent in European trade after a South Korean regulator voiced concern about state-run Korea Development Bank's KDB.UL interest in buying a global bank, possibly Lehman.
In Europe, the FTSEurofirst 300 index was down 0.34 percent after a 1.8 percent gain on Friday, but analysts continued to believe that the gloom hanging over stockmarkets had lifted a little.
"The clearly positive sign is that the raw material, oil and food prices are on the decline and the inflation outlook is more favorable," said Tuomas Komulainen, Helsinki-based strategist at Danske Market Securities.
"On the negative side is the euro zone economy slowing more than expected, but overall things are slightly more positive for equities," he added.
With trade thin because London markets were closed, sterling hit a two-year low against the dollar in the aftermath of data showing a stagnant British economy in the second quarter.
Euro zone government bond yields fell sharply after a G20 finance official told Reuters the International Monetary Fund had trimmed some of its forecasts for economic growth, with the euro zone figure for 2008 cut to 1.4 percent from 1.7. percent.
Futures trading indicated Wall Street would open slightly lower, ahead of U.S. July existing homes sales data due at 10:00 a.m. EDT.
Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) was down about 10 percent in European trade after a South Korean regulator voiced concern about state-run Korea Development Bank's KDB.UL interest in buying a global bank, possibly Lehman.
In Europe, the FTSEurofirst 300 index was down 0.34 percent after a 1.8 percent gain on Friday, but analysts continued to believe that the gloom hanging over stockmarkets had lifted a little.
"The clearly positive sign is that the raw material, oil and food prices are on the decline and the inflation outlook is more favorable," said Tuomas Komulainen, Helsinki-based strategist at Danske Market Securities.
"On the negative side is the euro zone economy slowing more than expected, but overall things are slightly more positive for equities," he added.
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