European stocks slide as investors eye G20

LONDON (AFP) — European stocks tipped lower on Wednesday, despite earlier gains in Tokyo and overnight on Wall Street, as investors awaited a crucial G20 summit in London, dealers said.

Financial markets were also cautious on the eve of a likely eurozone interest rate cut from the European Central Bank.

In early morning trade, Frankfurt fell 1.75 percent, Paris shed 1.79 percent and London lost 1.72 percent in value. All three markets had rallied Tuesday on bargain-hunting.

Elsewhere Wednesday, the picture was brighter in Tokyo, where shares surged 2.99 percent, but Hong Kong pulled 0.42 percent lower.

"Markets could tread water until we get a clear message of intent from the G20 summit," said Chris Hossain, senior sales manager at ODL Securities.

US President Barack Obama arrived Wednesday for talks with British Prime Minister Gordon Brown on the eve of a crunch G20 summit aimed at fixing the battered global economy.

At the London summit, the United States wants to secure a coordinated international stimulus package -- but is facing a split with European countries such as France and Germany.

"As G20 leaders convene in London ahead of tomorrow's summit, there does not seem to be much hope of major Continue reading the remaining 54% ...