Stock markets plunge before rallying
7 July 2005
BRUSSELS — European stock markets suffered sharp losses after the London bombings on Thursday, before rebounding later in the day.
Britain’s FTSE 100 index fell 1.6 percent, having earlier slid 3 percent, while markets in France, Germany, Holland and Spain all fell more than 1 percent.
In New York, the Dow Jones index slid 0.6 percent in early trading.
On the Euronext Brussels exchange, the Belgian Bel20 index managed to recoup some of its early losses.
At about 1.40pm, it was 1.9 percent lower at 3,061.81 points, up from the 2.8 percent loss recorded at 12.30pm. The biggest losers were financial stocks.
Market analysts said panic was witnessed on financial markets. Fortis bank analyst Filip Gijsels said traders withdrew bids when it emerged that London had been hit by a terrorist attack rather than a mechanical fault.
Meanwhile, the pound dipped as investors sought safety in the Swiss franc and commodities such as gold. The US dollar weakened, leading to a strengthening of the euro by 0.6 percent to USD 1.1999.
Oil prices fell 3 percent after earlier reaching new heights in New York.
US light sweet crude fell to a low of USD 57.20 a barrel from an high of USD 62.10. It later moved back to USD 59.08, down USD 2.20 on the day.
In London, Brent crude fell to a session low of USD 55.55, before recovering to USD 57.50, down USD 2.35.
[Copyright Expatica News 2005]
Subject: Belgian news