LONDON: European equities struggled on Monday, despite a sharp rally earlier in Asia, as London investors digested a 100-billion-dollar Bank of England plan to get British banks lending again.

Asian stocks surged earlier Monday as hopes grew that the worst of the global financial crisis may be over, after buoyant US company results had boosted Wall Street before the weekend, analysts said.

Japanese share prices closed up 1.63 percent, Hong Kong surged 2.17 percent and Sydney won 3.1 percent on easing concerns about the outlook for American corporate earnings, dealers said.

But European markets failed to benefit, as investor sentiment was hit by resurgent credit fears and crude oil prices striking a historic 117.40 dollars per barrel in morning deals.

The British capital’s FTSE 100 leading shares index slid 0.06 percent to 6,052.60 points, Frankfurt’s DAX 30 lost 0.70 percent to 6,795.12 points and in Paris the CAC 40 reversed 0.89 percent to 4,917.48. AFP

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