Blue-chip shares staged a muted recovery yesterday following a £44billion fall in the value of the FTSE 100 Index in the previous session.
The index closed 18.7 points higher at 6,721.5 but it was a small gain after three days of losses culminating in the steepest fall in five months on Tuesday, when it fell by 173 points or 2.5%.
Traders’ nerves have been frayed by the prospect of higher US interest rates and the latest decline in oil prices, though Brent has edged higher to just above $57 a barrel.
In New York, the Dow Jones Industrial Average also enjoyed a modest recovery after it had dipped 1.8% the previous day.
But it was a much stronger session for German and French markets after the European Central Bank’s boss Mario Draghi said the Eurozone economy was showing signs of recovery as his £780billion stimulus programme kicked in.
Germany’s Dax rose 2.7% while France’s Cac 40 was ahead by 2.4%.
But sterling plunged by a cent against the US dollar to reach its lowest level since July 2013, finishing a little above 1.49.
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