Shares pick up after losses on Wednesday, but Asia has fallen into a bear market overnight * Latest: Wall Street opens higher after Wednesday rout * Draghi hopeful of Brexit deal, but.... * ECB holds press conference after leaving interest rates on hold * Introduction: Market sell-off gathers pace as fears build * Full story: Asia Pacific shares plunge into bear territory 5.03pm BST AFTER TUMBLING IN EARLY TRADING, EUROPEAN STOCK MARKETS HAVE RECOVERED TO END THE DAY HIGHER. In London, the FTSE 100 has climbed back over the 7,000 point mark, ending up 41 points at 7,004. It would be higher, but for WPP’s woes. Wall Street started on the front foot with tech stocks on the rise after falling sharply in the previous session. Upbeat results from Microsoft and Telsa have gone some way to calming investor nerves after disappointments from Caterpillar and 3M earlier in the week. Whilst a slew of risk factors have hit traders confidence hard this month, investors will be looking searching for the bottom of this recent shake out. So far market shake out’s this year have been buying opportunities and whilst we are still in a bull market, we don’t see why this one should be any different right now. 4.06pm BST NEIL MACKINNON, GLOBAL MACRO STRATEGIST AT VTB CAPITAL, SAYS TODAY’S GOVERNING COUNCIL MEETING CAME AT A TRICKY TIME FOR THE ECB. The ECB’s decision to hold current interest rate levels at 0% takes place at a time of a cyclical slowdown in the Eurozone economies, as well as persistently subdued core CPI inflation. Business growth is at its slowest in two years and companies’ expectations of future growth have slipped to the lowest in four years. The Italian budget drama is also high on the agenda and the stand-off between Rome and Brussels is unlikely to be resolved. Also noteworthy is the risk of a worsening ‘doom-loop’ between Italian banks and their holdings of domestic sovereign debt. Italy is not Greece and Rome will react badly if the ECB resorts to its ‘enforcement tools’ of closing down bond purchases and turning off the liquidity tap for the Italian banking system.” Continue reading...
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