Markets start recovery as central banks fail to act
European markets up in spite of drop in US and Asia over lack of central bank action.
The FTSE 100 is up 0.51 per cent in early trading to 5,691.45, with European markets appearing to recover from the lack of action of the Bank of England and the European Central Bank (ECB) yesterday.
Both banks maintained interest rates at their current levels and markets slumped in the afternoon as Mario Draghi, president of the ECB, refused to confirm details of an expected bond buying programme, instead only saying it “may” act.
By this morning however, Germany’s Dax had moved 0.85 per cent higher to 6,662.11, while the Cac 40 is up 0.87 per cent to 3,260.66. In addition, the FTSEurofirst 300 which yesterday dropped more than 2 per cent, is up 0.46 per cent in early trading to 1,060.21.
The US and Asian markets, however, ended trading lower as the S&P 500 dropped 0.74 per cent to 1,365, while the Dow Jones slipped 0.71 per cent to 12,878.88 and the Nikkei closed down 1.13 per cent to 8,555.11.