Fears over banks and economy spark volatility >Ed^dsb&
@E>^\!
nH
Financial markets saw further volatility yesterday as worries about the fragility of the banking sector and deepening gloom about the global economic outlook remained uppermost in investors' minds. ^w12k2a
F>b6fUtR
“Sentiment is increasingly showing facets of the November gloom as temporary gains are quickly erased,” said Ashraf Laidi, at CMC Markets. 0&nF Vsz
;Z`)*TRp4
“We had repeatedly warned late last year that rising risk aversion would return in the first quarter as the economic story joins the earnings story on the downside.” H);'\]_'x
_(z"l"l=$
A strong opening rally on Wall Street stuttered, derailing a tentative recovery by European stocks and helping Treasury bonds pare early losses. The yen shot higher across the board as nervous investors sought the safety of the Japanese currency. A zle ;\l`
y*(YZ zF
Conversely, sterling continued to suffer on the currency markets as the fallout from the bail-out package for UK banks announced at the start of the week continued to reverberate around the markets. K`X2N
4By-+C*
The pound fell to a 23-year low against the dollar. It also touched a fresh record low against the yen and lost ground against the euro.