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European Markets Yo-Yo

London, Frankfurt bourses swing wildly in early trading

By Jason Farago,  Newser Staff

Posted Jan 22, 2008 5:30 AM CST
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(Newser) – European markets went haywire in early trading Tuesday as investors reacted to a second straight day of Asian declines and awaited the reopening of Wall Street. After a disastrous showing for the Nikkei, Hang Seng and other Asian bourses, European markets plunged: the FTSE 100 dropped 200 points minutes after opening. Yet shares in London rallied amid rumors of emergency rate cuts by the three main central banks.

Talk of a coordinated emergency rate cut by the Fed, the ECB and the Bank of England drove London shares back up, and after 3 hours of trading the FTSE was up 0.6%. In Frankfurt, however, the DAX remained slightly down, having recovered somewhat from declines of 3%. All the European markets are waiting anxiously for the start of trading in New York, where markets were closed yesterday.

Men walk past a logo outside the London Stock Exchange in London, Monday Jan. 21, 2008. European and Asian stock markets plunged Monday following declines on Wall Street last week amid investor pessimism over the U.S. government's stimulus plan to prevent a recession. The U.K. benchmark FTSE-100 dropped...
Men walk past a logo outside the London Stock Exchange in London, Monday Jan. 21, 2008. European and Asian stock markets plunged Monday following declines on Wall Street last week amid investor pessimism...   (Associated Press)
The front pages of British newspapers are displayed in London, Tuesday Jan. 22, 2008. Global stock markets extended their shakeout into a second day Tuesday, plunging amid fears that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines in Asia and Europe were expected to...
The front pages of British newspapers are displayed in London, Tuesday Jan. 22, 2008. Global stock markets extended their shakeout into a second day Tuesday, plunging amid fears that a possible U.S....   (Associated Press)
A London office worker keeps an eye on the FTSE 100 Index Tuesday Jan. 22, 2008. Global stock markets extended their shakeout into a second day Tuesday, plunging amid fears that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines in Asia and Europe were...
A London office worker keeps an eye on the FTSE 100 Index Tuesday Jan. 22, 2008. Global stock markets extended their shakeout into a second day Tuesday, plunging amid fears that a possible U.S. recession...   (Associated Press)
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