Stock markets across Europe bounced back from earlier losses this morning but the mood remains volatile after more disappointing results last night from leading US companies.
Dealers said a swing around from early weakness in US stock index futures helped trigger the buying although the underlying mood remained extremely nervous after disappointing results news overnight from US firms Intel and Apple.
Britain's FTSE 100 index recovered from a lower start today, pushing strongly into positive territory with banks in the lead. By 9 a.m. the benchmark index was up 62.9 points or 1.6 per cent at 4,084.8 as a number of buy programmes washed through the market, helping the index up from its initial session low of 3,966.8.
"It's fun and games today. The (US) futures turned around so we went with it. I don't think anyone has got a clue where the market's going to be in five minutes' time let alone five days'," one trader said. European share prices were broadly higher today despite the disappointing performance on Wall Street.
The pan-euro zone Euro Stoxx 50 index rose 1.6 per cent to 2,757.9 points, while the French CAC 40 index climbed 0.9 per cent to 3,347.8.
But the German DAX 30 index bucked the firmer trend elsewhere, slipping 0.1 per cent to 3,973.7 points. Deutsche Telekom led the market lower as investors were disappointed with the company’s choice of successor to ousted chief executive Mr Ron Sommer.
In New York last night the Dow Jones Industrial Average closed 1.9 per cent lower after an earlier rally on the back of soothing remarks from Federal Reserve chairman Mr Alan Greenspan, proved short lived.