European equity markets struggled to join a global recovery.
Tuesday, the Pan European stocks index gained 0.8% from
the open but then fell back after initial gains,
London's FTSE index was soon in the red again that
all followed a soaring rebound in Asia. Earlier,
Japan's Nikkei index jumped 10% recovering most of the previous
day's meltdown. Markets regained their poise after reassurance from
officials at the US Federal Reserve who said they were
alive to the dangers of a downturn. Data on
the country's service sector. Also pointed to a recovery
Tuesday then brought hopeful figures for Europe too with German
industrial orders, smashing forecasts. Finance expert Angel Zhong
at Australia's RMIT University says worries over the US economy
are overdone in terms of the labor market. So
even though there is a recent rise in unemployment data
, um but the other labor market indicators are still
showing um a certain degree of strength. Um And
then in terms of the fed, um the fed
is expected to potentially cut interest rate if they do
so. That means it will help stimulate the economy
and it will avoid a recession. Currency markets also
reversed. Some of the previous day moves the dollar
paired losses against the Swiss franc which is often seen
as a relative safe haven. But the turmoil may
be far from over market volatility gauges including the Vix
Wall Street's so called fear index remain at elevated levels
. Concerns linger too over the very high valuations for
tech stocks. After months of gains, one analyst
told Reuters that only the bravest equity investors would be
jumping back in to buy now.