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Greater London, England -- (SBWIRE) -- 11/19/2010 -- Nick Serf, Market Analyst of financial spread betting provider City Index, commented on 16th November:
European stock indexes brushed off worries over Ireland and other peripheral Eurozone countries to post modest gains at the close on Monday.
Ireland is being urged by European officials to accept an IMF bailout package to restore confidence and stop the spread of contagion to other Euro members.
European stocks took their cue this morning from a late sell off on Wall Street last night and heavy overnight falls for Asian bourses.
The Shanghai Composite index which is closely watched by investors as a barometer for global growth fell nearly 4 percent on continued tightening fears.
Rumours swirled the market that the Peoples Bank of China would have to start taking a more aggressive stance in the fight to control inflation within the world’s second biggest economy.
Bank shares were the biggest losers in China and that has fed through to Europe this morning, with Lloyds and HSBC amongst the worst performers.
Pressure from Portugal and Spain could force Ireland to accept EU and IMF help to stop the spread of contagion to other European countries, after Portugal warned last night that it could be in need of a rescue package. Ireland’s ministers however continue to deny the need for aid saying that the problem lies with liquidity at some of its banks and not with sovereign debt.
Bank of England Governor Mervyn King will have to write another letter to the chancellor George Osborne after the release of UK inflation data at 9.30 GMT.
The Consumer Price Index for October showed that inflation remained above the 2 percent target, coming in at 3.2 percent. This was higher than the forecasted 3.1 percent analysts had expected and immediately caused the price of Sterling to rally up to session highs against the Dollar and the Euro.
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