View more on these topics

US blast rocks markets

Analysts were preparing for the possibility of a global recession on Tuesday, after a barrage of terrorist attacks in the US sent the world’ stockmarkets into freefall.
Wall Street was suspended after two passenger jets crashed into the World Trade Centre shortly before 9am East Coast time. However, European markets continued to trade, with the FTSE 100 plummeting almost 6 per cent, the French CAC falling more than 7 per cent, and the German Dax down by more than 10 per cent at 5pm UK time. The FTSE’ close of 4746 was its lowest level since 1998.
Many of the world’ financial giants were based or owned offices in the building, including Morgan Stanley, Saloman Brothers, American Express, Commerzbank, Deutsche Bank and insurance giant Aon.
One senior City broker said: ” great and the good were in that building. It’ cataclysmic. These companies may have lost all their great people. The financial loss is blasted into insignificance by the cost to human life.”
Oil prices soared on Tuesday afternoon in anticipation of an announcement that Middle Eastern terrorists were responsible for the attacks. However, a statement of culpability from a Palestinian extremist organisation was dismissed as false.
Panic in the world’ markets is now expected to continue over the coming weeks, although it is not yet certain when Wall Street will reopen. Commenting on Tuesday afternoon before markets closed, one London broker said: ” are just selling anything. People are panicking. If a war breaks out, you don’ want to be long on anything.”
Edinburgh Fund Managers deputy chief investment officer Iain Beattie says the longer term effects on markets will depend on reactions to the crisis. He says: ” depends completely on the response, and how the American people react. I don’ think they will take this sitting down. Trade will grind to a halt and the economy will slow down. This is a shocking thing to happen.”
Analysts believe that the crisis will now prompt a further 0.5 per cent cut in US interest rates on October 2, in a bid to prevent a full scale recession.


Isis launches UK fund

Isis, the retail investment brand of Friends Ivory & Sime has launched the UK Dynamic Fund, which aims to invest in a concentrated portfolio of around 40 UK equities.The fund will be managed by Rodger McNair supported by Richard Bell. The two will back their stock ideas in the UK market irrespective of the index […]

iShares gets resourceful

iShares – iBloomberg European Resources Type: Exchange traded fund. Aim: Growth by tracking the Bloomberg European investible resources index. Minimum investment: Subject to negotiation with stockbroker. Maximum investment: None. Investment split: 100 per cent tracking the Bloomberg European investible resources index. Place of registration: Dublin. Isa link: Yes. Pep transfers: Yes. Charges: Annual 0.5 per […]

Scottish BS stays local

Scottish Building Society has designed a flexible buy-to let mortgage for borrowers to buy properties only in Scotland.The mortgage is available for loans of up to 80 per cent of valuation and up to 3 properties can be purchased within a total advance of £250,000. The maximum loan for each property is £100,000. The mortgage […]

The principle of default funds

In response to Chris Beller&#39s letter (Money Marketing, August 2), the principle behind the legislation with regard to stakeholder default funds is that members should not be forced to make their own decision about investment options. The legislation does not require that each listed fund at scheme level is linked to a specific defined situation […]

'Feeling the Squeeze'

Royal London carried out a UK wide survey with 2,500 consumers age 35-44 over the summer. The survey found that over a third, 34 per cent, said their finances felt Squeezed and so were struggling to meet day-to-day expenses, despite 87 per cent being aware that they need to save more. However, the survey did […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. W9mXUD naroyubykuqa, [url=]butpxvfiqspx[/url], [link=]btuxyawlzsey[/link],

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm