Continental markets opened slightly lower despite a firming in the US dollar, an expected rate cut in Sweden and a surprise easing in rates by the Spanish central bank.

Frankfurt

Frankfurt shares move lower in early trade, despite a firmer dollar, the Dow's advance and consolidation in the insurance sector.

The leading Dax index was down 7 points at 4,753 by 1013 GMT.

German insurer WurttAG, and Wustenrot Beteiligungs-GmbH, a unit of Wustenrot Holding AG, announced today plans to merge as of January 1.

The merger will result in a market capitalization of between DM8bn and DM12bn, the companies said.

Traders said chemical stocks could be pressured today by fresh industry data that reaffirm the poor outlook forecast for German chemicals in 1998 and 1999.

Paris

French shares were trading modestly up in directionless trade after a lower opening amid a dearth of corporate news and a lack of positive signals from elsewhere.

The Cac 40 index of leading shares was up 19 points at 3,589 at 1015 GMT.

An absence of visibility on the overall economic outlook is keeping investors from taking strong positions, dealers said.