23-01-2008
European stock outlook weakens
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
European stock markets are continuing along a downward trajectory, it has emerged.
According to reports, European markets are weakening on the back of gloomy economic data, reports Reuters.
Indeed, during early trading today (January 23rd), the FTSEurofirst 300 index declined by 0.8 per cent; the FTSE 100 index of shares fell by 0.5 per cent at around 09:00 GMT.
"Although the panic may have subsided for now, the fear of the market turning lower is still there," said Martin Slaney, head of derivatives at GFT Global Markets.
"Volatility is likely to continue at its current sky-high levels for the next few weeks, as investors digest further rate moves by the US."
Mr Slaney's comments come after the Federal Reserve's decision to reduce US interest rates.
Markets have also weakened after Jean Claude Trichet, the president of the European Central Bank, confirmed that there exists a downside risk to growth.