Fears over banks and economy spark volatility 0 .FHdJ<
(! 0j4'
Financial markets saw further volatility yesterday as worries about the fragility of the banking sector and deepening gloom about the global economic outlook remained uppermost in investors' minds. c>R`jb@$N
&PRx,G5
“Sentiment is increasingly showing facets of the November gloom as temporary gains are quickly erased,” said Ashraf Laidi, at CMC Markets. 0~
Iu7mPY
%R.xS}
Q
“We had repeatedly warned late last year that rising risk aversion would return in the first quarter as the economic story joins the earnings story on the downside.” FI1THzW4J
%Le :w C
A strong opening rally on Wall Street stuttered, derailing a tentative recovery by European stocks and helping Treasury bonds pare early losses. The yen shot higher across the board as nervous investors sought the safety of the Japanese currency. C @y}*XV[b
jF38kj3O7
Conversely, sterling continued to suffer on the currency markets as the fallout from the bail-out package for UK banks announced at the start of the week continued to reverberate around the markets. a
E7u5 PM
mFqSD
The pound fell to a 23-year low against the dollar. It also touched a fresh record low against the yen and lost ground against the euro.
