Sotheby's London auction hits target at £33.5 million

LONDON (Reuters) - Sotheby's auction of impressionist and modern art raised 33.5 million pounds Wednesday, comfortably within the pre-sale estimates of 26.8-37.3 million pounds.

The auction, including a painting by Pablo Picasso when he was in his late 80s, was the second of four major sales in London this week and next that will provide fresh clues about how a once-booming art market is faring in the recession.

The final auction tallies include buyer's premium, but the pre-sale estimates do not.

While soaring values have fallen significantly in recent months, they have not collapsed.

The main problem for auction houses like Sotheby's and rival Christie's is the sharp drop in the number of high-quality works sellers are willing to offer at auction during the economic downturn.

At the corresponding sale last year, Sotheby's realised 102.2 million pounds.

"Tonight's auction saw strong prices achieved across the board and this is a very positive message for the market," said Melanie Clore, co-chairman of impressionist and modern art at Sotheby' worldwide.

"This evening we've seen once again that there is still a very healthy ongoing market for great impressionist and modern works of art."

The top lot on the night was Picasso's "Homme a l'epee," which fetched 7.0 million pounds, within estimates of 6-8 million.