THE TELEGRAPH: World stock markets tumbled as investors digested Germany's unilateral ban on short-selling but the euro rallied from fresh four-year lows on talk of central bank intervention.
European bourses, which followed Asian shares lower, slid further when the Dow Jones opened down 1pc. The FTSE 100 sank 2.5pc, Germany's DAX lost 2.2pc, and France's CAC fall 2.4pc. Japan's closed down 0.5pc and Hong Kong 1.8pc.
The euro, which has been volatile, spiked more than than a cent against the dollar to above $1.23 at 2pm on rumours that the Swiss National Bank or European Central Bank had entered the market.
"Euro is popping all over as talk is going around that the ECB may be considering intervention," said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey.
"It looked like the Swiss were in earlier, though that hasn't been confirmed, so we're left to speculate. But the market is exceptionally short euro, and with it bouncing today, the wind would be at their back." >>> | Wednesday, May 19, 2010
