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Friday 12 August 2011

European markets swing higher in mid-morning trade



European stocks markets have moved upward trend as the latest move to restore market order - a ban on short-selling of some financial shares - takes effect. Ban on short selling reduce selling pressure in stock market.
Overnight, four eurozone countries - France, Italy, Spain and Belgium - banned short-selling of some stocks in an attempt to stabilise markets.
After initial selling pressure, London's FTSE 100 and Paris's Cac indexes were gained about 2%. Frankfurt's Dax was up almost 3%.
Earlier, Asian stocks were mixed as global trading remains nervy.
Short-selling involves investors selling stocks they do not own in the expectation they will drop in price before buying them back and pocketing the difference.
The last time major Western countries made a similar move was in 2008 after the collapse of Lehman.
Both countries' market authorities said they had no plans to introduce another ban.

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