US retail boost lifts stock markets
Friday 12 August 2011
Stock markets continued their revival today as US retail sales came in better than expected and European markets reacted favourably to the short-selling ban imposed overnight.
The FTSE 100 Index in London added more than 2%, with markets in Europe also higher. The CAC-40 in Paris jumped by 2.5% while the Dax in Frankfurt was 2% higher.
European markets started to recover yesterday after it was confirmed that French president Nicholas Sarkozy and German chancellor Angela Merkel would meet next Tuesday to discuss the eurozone's financial problems.
Last night, European authorities took further action to bolster financial markets by banning short-selling of financial stocks in France, Italy, Spain and Belgium for 15 days.
Markets around the world have endured wild swings all this week sparked by concerns over the health of the US economy, sovereign debt fears and rumours over the financial position of several of France's leading banks, with Societe General and BNP Paribas especially singled out.
Christian Noyer, the head of France's central bank, was forced to state yesterday the rumours were "unfounded" and that the country's financial institutions were sound.
SocGen chief Frederic Oudea added the rumours were totally baseless and clients could have confidence in the bank.
Worries about the health of French banks unsettled share prices of UK banks, with fears over the knock-on impact hitting Barclays, Royal Bank of Scotland and HSBC.
London's blue chips, overall, have lost £145 billion in value over the past two weeks even after today's rise.
US shares have also been very volatile, with the Dow Jones Industrial Average seeing swings of between 4% and 5% on a daily basis.
The Dow rose by almost 4% yesterday as unemployment data came in better than expected and it has continued to rise today following the retail sales data.
The US Commerce Department said retail sales rose 0.5% last month, the best showing since March, with the previous two months figures also revised upwards.
The latest data and jobless figures yesterday followed a string of weaker-than-expected economic reports that had raised fears the US was heading for a double-dip recession.
filmFilm producers sue Warner Bros for $75m over Hobbit films
voicesJust when you thought you could find a man, get married, and have a baby by the age of 35... it turns out you’re too late, says Grace Dent
Swedish stars ask fans for £195 pledges on crowd-funding website
Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
French café starts charging extra to rude customers
Australia: Gay marriage law reversed by high court less than a week after first weddings
Church versus state: Scientology faces unholy war after court ruling
Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- 1 Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
- 2 French café starts charging extra to rude customers
- 3 Australia: Gay marriage law reversed by high court less than a week after first weddings
- 4 Not all right on the night
- 5 Australia incest case: Severely deformed children found in remote farming community after generations of inbreeding
- < Previous
- Next >
iJobs Money & Business
£60000 - £100000 per annum + benefits + bonus: Harrington Starr: Senior Busine...
£500 - £550 per day: Cornwallis Elt : Business Systems, Business Analyst, Plat...
£90000 - £110000 per annum: Cornwallis Elt : Solution Architect, Credit Risk, ...
£44999 - £60001 per annum + Benefits: Pro-Recruitment Group: A Top Tier firm i...