US stocks were mixed

New York shares had a see-saw day as investors mulled over a batch of mixed corporate results.

At 1700 GMT the benchmark Dow Jones was 26 points higher at 8478.

Good third-quarter results from telecommunications firm AT&T were counterbalanced by poor figures from giant chemical concern Union Carbide.

Union Carbide also issued a warning for its fourth-quarter outlook.

Europe

Despite the erratic performance in New York, shares in Europe managed to stay in positive territory.

London shares managed to stay in positive territory

London remained firm, but off early highs. The leading FTSE 100 index finished 14 points higher at 5231.

Poor trade figures did not seem to move the market, but trading was thin after initial futures-driven activity.

German and French markets showed strong gains after the new left-wing government in Germany made it clear that it favoured further interest rate cuts.

In Frankfurt, the DAX index powered ahead by 126 points, or more than 2%, after the European summit seemed to endorse job growth over the fight against inflation.

The market was also boosted by the final agreement of shareholders for the merger of Daimler Benz and the US Chrysler group to go ahead.

In Paris, the Cac 40 index also posted a strong gain, up 55 points or more than 1%.

Tokyo

The main share index in Japan, the Nikkei, was down 2.1%, or 301 points, to finish at 13,843, on further worries over the health of the financial sector.

Last week the government finally moved to nationalise the most troubled of Japan's 19 big banks - the Long Term Credit Bank of Japan.

But confidence was shaken by news that Moody's Investors Service planned to review the ratings of four major Japanese banks and eight major insurance companies.

The governor of the Bank of Japan, Masaru Hayami, said that the cautious lending by the banks, overburdened by bad debts, was slowing down any recovery.

"There is a major decline in capital spending due to the cautious lending..it is difficult to see a quick economic recovery," he said.

And chief cabinet secretary Hiromu Nonaka said that the government would take punitive measures against banks with too-tight lending policies, including the suspension to business contracts.

Last week Tokyo shares had recovered from their record lows, rising 10% until the rally fizzled on Friday.