After four days of freefall and volatility the stock market rallied this morning as the bargain hunters moved in. Yesterday the FTSE dropped to its lowest level for four years as Europe’s stock markets followed declines in the Asian markets.
There were fears of a global crash as the French and German markets also reached two-year lows. The initial catalyst for the falls was bad news from the US as new reports showed unemployment to have risen to 4.9%. Wall Street saw huge losses as the news came in and the Dow was down 200 points shortly after the London markets closed. The footsie closed down 134 points at 5,070.3, just above the days low of 5,068.1.
Today the market has seen some recovery. At 7.30am, the FTSE 100 was up 38.1 at 5,071.8, as investors hunted out bargain stocks – particularly in the technology and telecoms sector which have suffered spiralling declines in recent weeks.
