Markets recover after blasts
London Guardian | July 8, 2005
European shares today recovered most of their losses one day after a series of bomb attacks in London left more than 50 dead.
The FTSE 100 index of leading shares raced past its pre-blast level to close up 1.4% at 5,232 points. The CAC 40 index in Paris rose 1.7% to 4,294.1 and the Dax in Frankfurt finished up 1.3% at 4,589.
British Airways, the airports operator BAA and the cruises firm Carnival were among the top gainers, up by around 2%. They lost ground yesterday amid fears that the London blasts would disrupt the leisure and travel industries.
Dealers said the broad-based rally reflected the stoic mood among investors, especially because they had been through similar events, such as the Madrid bombings, before.
"Once you know the extent of the uncertainty, people cope with it," David Buik, of the financial bookmaker Cantor Index, told Reuters.
"People cope OK with good and with bad news, but they don't cope well with uncertainty - and that was the problem yesterday," he added.
The FTSE 100 was back above its level of two days ago - up 4% from a month ago and only 30 points shy of its recent three-year peak.
It went into a tailspin yesterday after the first explosion was reported, shedding 200 points, or 3.5%, in only 90 minutes as the extent of the London blasts became clear.
The drop - to 5,022 - was the biggest during a single day in almost three years and wiped £44bn off the value of Britain's biggest companies.
In the US, the Dow Jones industrial average was up 93 points, almost 1%, at 10,394.8. US employers added 146,000 jobs in June, below Wall Street forecasts, but the unemployment rate fell to its lowest point since September 2001, a government report showed.