The FTSE 100 opened 87 points lower this morning after US Fed chairman Alan Greenspan failed to deli...
The FTSE 100 opened 87 points lower this morning after US Fed chairman Alan Greenspan failed to deliver a big enough rate cut to lift Wall Street. And just in case the US Federal Reserve Board members are still not sure what the markets are thinking, the Dow Jones closed down 238 points at 11,405.
In Tokyo it was a different story with the Nikkei registering its largest one-day gain in nine years. The benchmark index climbed 913 points, or 7.5%, to close at 13,104. The yen slipped against the dollar, suggesting Japanese investors are buying the US currency aggressively because it is still seen as a global safe-haven asset class.
The benchmark index climbed 913 points, or 7.5%, to close at 13,104.
On the LSE yesterday's winners are today's losers, with all the usual suspects from the TMT front taking hits. So Baltimore and Bookham are down 7% this morning and Autonomy, still trading on stretched valuations, is down 70p to 850p. ARM, another old favourite of private investors, has given up 15.5p, or 5%, standing at 304.
Stocks on the up were to be found among some of the Far East funds, notably Fleming Japan and Fleming Japanese Smaller Companies both made gains of around 5% at start of play.
The markets in Europe are now likely to tread water until the US opens, with all eyes fixed on the Dow and the Nasdaq to see it faith in Greenspan has definitely dissipated as stocks continue their southward journey, with more pain for investors.
The IFO index, Germany's business conditions barometer, fell 94.9 in February compared with -97.5 in January. This was much lower than expectations of 97.0 and will put the European Central Bank in the spotlight, and add to pressure for the ECB to acknowledge global risks to growth by cutting rates.
In addition, pressure for an April interest rate cut by the Bank of England is likely to mount as the US edges nearer to recession.
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