Morning markets: FTSE down 3.5% despite “stoic” Asian performances

9th August 2011

In its live business blog The Guardian was reporting that there was not a single riser on the FTSE 100 and that bank shares were in retreat.

"Barclays and Royal Bank of Scotland are down 6%"

Earlier, at 8am the Financial Times (paywall) was reporting how European stocks  had rallied after a "stoic performance" from some Asian bourse.

"The FTSE Eurofirst 300 was up 1 per cent, after falling initially in reaction to Wall Street’s 6.7 per cent slump overnight, which continued a worldwide rout predicated on global growth fears, the US rating downgrade, eurozone fiscal concerns and signs of stress in the US banking sector.

"US stock futures were suggesting New York would begin Tuesday’s session with a gain of 3 per cent, partally reversing losses over the past 12 trading days of nearly 20 per cent."

Gold, the so-called safe haven, was up at $1,771 an ounce, up another 3.1 per cent.

However Asian markets did, for the most part, end the day's trading on a positive. Australia’s S&P ASX/200, which had been down 5.5 per cent, rallied to close up 1.2 per cent.

The FTSE Asia Pacific excluding Japan index, which was down more than 5 per cent by mid-morning in Hong Kong, closed off 1.7 per cent while in Seoul, the Kospi was down more than 8 per cent but halved its losses to close down 3.6 per cent.

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