LONDON - The London sharemarket traded up in mid-morning trade on Wednesday but the mood was far from buoyant. On Tuesday it tested four-year lows as markets around the world struggle to comprehend the massive terror attacks on the United States.
The blue chip FTSE-100 share index has already plummeted to
its biggest one-day fall since the crash of October 1987. On Tuesday, the index closed 288 points lower at 4746.
With New York paralysed, Wall Street sharemarkets are closed for a second day on Wednesday, robbing world markets of a much-needed lead.
Japan shuddered at the vivid televised images. The sight of the World Trade Center imploding in a plume of dust and smoke left investors aghast and sent them another signal to sell Japanese stocks, pushing the Nikkei average below psychological support of 10,000 for the first time in 17 years.
Hong Kong's Hang Seng Index dived nearly 10 per cent in heavy volume on Wednesday morning but clawed back some points towards the close.
"The Far East is as bad as anyone expected, down heavily in Tokyo, it's not going to help matters," said Stuart Lane at spread-betting firm Financial Spreads.
Traders said the sense of disorientation in world markets could continue until next week, guessing that New York's stock markets might be closed until Monday. The two-day closure over Tuesday and Wednesday is the first time the market has been shut for two consecutive days since the end of the Second World War.
But the overriding mood in the London market will be one of shocked sadness at the huge loss of life in the United States.
"All of this [markets] nonsense just pales into insignificance compared to what the people are going through out there," said Mr Lane at Financial Spreads.
* Gold prices jumped in Asia yesterday but most commodities trading was paralysed.
Spot gold was quoted at $US284.50/287.50 an ounce, up from Hong Kong's open at $283.50/$288.50 and the previous close of $271.30/271.80, but below the late London fix at $287.00.
The advance ran out of steam as some investors stayed out of the market, despite the yellow metal's traditional role as a safe haven in times of international crisis.
Traders in India, the world's biggest gold consumer, said prices were likely to return to previous levels in a few days.
"I don't think gold prices will sustain at the current level," said Nayan Pansare, a senior official of gold trading firm Inter Gold.
* Brierley Investments yesterday evening requested a suspension of trading in its shares on the Singapore Exchange and London Stock Exchange pending the release of a price-sensitive announcement.
BIL's interests include Air NZ and Thistle Hotels.
Brierley's Singapore shares fell 3.5c at 40.5c before the suspension in a broadly lower market.
- REUTERS
Full coverage: Terror in America
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Air New Zealand flights affected
LONDON - The London sharemarket traded up in mid-morning trade on Wednesday but the mood was far from buoyant. On Tuesday it tested four-year lows as markets around the world struggle to comprehend the massive terror attacks on the United States.
The blue chip FTSE-100 share index has already plummeted to
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