Oil prices soared on the open markets yesterday afternoon as did government bond prices as investors attempted to move their money into ‘safe’ areas. Gold also made gains as 20 years of unpopularity was reversed by the tragedy.
This morning London’s FTSE 100 index was up 39 points at 4,785 by 12.05pm, following a volatile morning of trading which saw the market swing between gains of 135 points and a fall of 94. Restrictions were imposed on trading on the Nikkei for fear of a global collapse but trading has been reserved with most traders limiting themselves to closing open positions and carrying out customer orders.
“When something like this happens, it shakes confidence,” said Robert Hormats, vice-chairman of Goldman Sachs International. “In the short term it will weaken investor confidence in the US somewhat, but I think in the medium term people will pull together.”
