Equity markets subdued in early trading
City Index November 18, 2011 4:45 PM
<p>Equity markets across the board were called to open lower this morning following last night’s weaker US session, continuing Europe’s poor performance yesterday. US markets […]</p>
Equity markets across the board were called to open lower this morning following last night’s weaker US session, continuing Europe’s poor performance yesterday. US markets closed off their worst levels but still finished the day firmly in the red. The DOW closed down 134 points (1.13%) at 11,770, with the S&P at 1216, down 20 points (1.68%) on the day.
This morning’s sell off in European equity markets was halted by rumours of the ECB buying peripheral European bonds. The FTSE had traded down to a low of 5365 before the rumour and is now looking to consolidate back above the 5400 level. The DAX and CAC 40 both traded with similar patterns, posting session lows ahead of the bond buying before looking to revert back to being unchanged on the day.
This morning’s session has felt subdued compared to previous days with no real emphasis in either direction. The ECB buying bonds appears to be having the desired effect in the short term, the desired effect being stemming the uptick in European bond yields and reliving equity markets of any apparent panic selling. For now equity markets appear to be stabilising at current levels but given the growing complexity of the eurozone’s problems, and the nervousness of investors, one can expect the recent volatility and turbulence to continue.
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