Rates slashed in Europe, stocks down
By MoneyhighStreet Staff. Published on November 6, 2008 This post currently has one comment.
Stocks were down sharply across Europe today, despite rate cuts from central banks.
The FTSE 100 in London closed 5.63 per cent down at 4275.72, as the Bank of England cut its lending rate to its lowest level since 1955.
A eurozone reduction of 0.5 per cent did not stop sell-offs in Paris and Frankfurt, with the Cac 40 and the DAX off 5.92 and 6.79 per cent respectively.
Over recent days, gloomy new figures on European retail sales and the US service sector have added to the sense that developed economies are moving into a deep recession.
In a statement following the rate cut, the Bank of England said that there had been a "marked deterioration" in conditions.
"We had a week of rebound and then we''re coming back to reality," Francis Lun, general manager of Fulbright securities in Hong Kong, told the BBC.
"Despite the world euphoria over the election, the world''s economy hasn''t changed."
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