16 SEP 2010
LONDON — Europe's main stock markets dropped on Wednesday in contrast to sharp gains in Tokyo after the Japanese government intervened to weaken the yen, aiding the country's exporters.
Markets also mulled an announcement by the European Union that it had taken steps to regulate high-risk trading instruments with new rules governing practices blamed for the global financial crisis.
London's FTSE 100 index of top shares fell 0.26 percent to 5,552.80 points in midday trade.
Frankfurt's DAX 30 slid 0.36 percent to 6,253.70 points and in Paris the CAC 40 index was down 0.48 percent to 3,756.37 points near the half-way mark.
The Stoxx 50 index of leading eurozone companies declined 0.49 percent to 2,792.87 points.
The European Commission proposed new rules aimed at bringing more transparency to over-the-counter (OTC) derivatives and the practice of "short-selling" securities in an effort to tame financial markets.
"No financial market can afford to remain a Wild West territory," said EU financial services commissioner Michel Barnier, warning that OTC derivatives have a "big impact" on the prices of products ranging from mortgages to food.
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