Global markets still in turmoil by Zuzana Zelenakova

Even after the US Federal Reserve cut interest rates on Tuesday to prevent the country from sliding into recession, global market remains in turmoil. The biggest cut in 25 years was supposed to be the answer to worsening employment and housing conditions in the United States. The bank executives made the decision by means of a telephone conference call. While Wall Street experienced rebound on Wednesday and closed with a gain of 289.89 points, European stocks faced the reverse after European Central Bank decided not to allow an early rate cut of its own. By the close, London´s FTSE index was down 2.28 percent at 5,609, France´s CAC 40 slashed 4.25 percent to 4.636. Germany´s Dax fell down 4.88 percent to 6.439. President of European Central Bank Jean-Claude Trichet stated in his speech that the best the bank can do right now is to target inflation in the Eurozone, or in other words, European interest rates are not about to come down. However, Asian and Australian markets were calmed by Fed´s rate cut. India shares increased by five percent, Honk Kong gained 10.7 percent and Tokyo 2.04 percent by the close. Other global markets were characterized by volatility.

related story: http://news.yahoo.com/s/afp/20080123/bs_afp/stocksworld_11;_ylt=AuXaRrKzu0L6G5kk8HBSDsOs0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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