Friday, July 27, 2007
Volatility in UK and European equity markets remain after Asia and US stocks tumble
The FTSE 100 rapidly fell 0.9 soon after opening this moring but at the time of posting this blog has rallyed, up 0.18. David Buik at Cantor said, "With uncertainty prevailing on credit, markets are likely to see levels of volatility like this for many sessions to come, until the strength of losses from sub-prime level are known and whether they are containable”. Fears about an end to the levereged buy-out boom which had boosted share prices has created turmoil due to increasing difficulty in raising funding for takeovers and buy-outs. During Thursday trading London's blue chips experienced their largest sell-off in more than four years. "Bad news has been building for months and these worries have now come to a head”, said Ronan Carr, equity strategist at Morgan Stanley.