Global markets rebound as investors snap up bargains
Global markets have made an encouraging start to the week, with the US opening up sharply, following in the footsteps of the FTSE 100.
Global markets have made an encouraging start to the week, with the US opening up sharply, following in the footsteps of the FTSE 100.
The Dow Jones opened up 1.81% or 195 points, to 11,012, buoyed by gains across Europe and with investors expecting a boost later in the week from the all-important Jackson Hole speech.
Last year Federal Reserve chairman Ben Bernanke buoyed markets after hinting at a second round of QE, and this year investors will be listening out for any further plans to stimulate the economy.
Ahead of the speech, investors were positive, with the S&P 500 also up 1.59% or 18 points, to 1,141.
Meanwhile in the UK the FTSE 100 has started the week brightly, having been lifted by resources stocks posting big gains as investors look for bargains in a space which was heavily sold off last week.
By 2:50pm, miners and peers had propelled the index up 2.74% or 138 points, to 5,178.
Cairn Energy is top of the leaderboard, up 5.08% to 295p, while John Wood Group has also fared strongly, gaining 4.63% to 531p.
However, banks are weighing on the broader market rally as speculation intensifies over a short-term funding crisis in the European banking system.
Royal Bank of Scotland has seen its share price fall below 20p for the first time since March 2009.
Elsewhere in Europe the French Cac is up 2.96% to 3,106, while the German Dax is up 1.77% to 5,577.
Gold is continuing to rise despite the more buoyant mood in equity markets, with investors continuing to flock to the precious metal and driving up the spot price 1% to $1,836.
