All eyes on stock markets during stormy conditions
Traders' eyes remain firmly fixed on LED electronic signs and displays in trading floors this week as global stock markets have been left reeling from a turbulent few days.
On Monday the FTSE 100 index endured losses of around £77 billion as a result of fears of recession in the US; the worst one-day slump since September 11th 2001.
However, a surprise move saw the US Federal Reserve to make its biggest base-rate cut in 25 years of 0.75 per cent yesterday, in a bid to keep the US economy from recession.
European stock indexes still remain under increased pressure, due to fears that Europe's central banks will not take the US' lead in cutting interest rates.
And speaking following the US' decision to bring rates down to 3.5 per cent, Bank of England governor Mervyn King warned that the UK faced tough challenges this year.
"2008 is likely to see higher energy prices, higher food prices and, with a lower exchange rate, higher import prices, pushing inflation above the two per cent target," he said.
Yesterday another £54 billion was wiped off Britain's firms, however around half the previous day's losses were eventually made up.
The Dow Jones, meanwhile, lost four per cent of its value within the first five minutes after reopening following a three-day break.
Thursday, 24th January 2008
