World stock markets bounced back on the news of the global rates cut, after a torrid morning of red numbers. Paris had been down eight percent, but came back into positive territory – briefly – after the announcement.
Europe’s premier market, the FTSE 100 in London, surged back after dropping more than six percent during the morning’s trading. Frankfurt had slipped seven percent after opening, but recovered somewhat as traders regained confidence.
The drama followed an almost free-fall in Japan. The Nikkei plunged nearly ten percent, its worst performance since the Crash of 1987. Tokyo will be hoping the optimism remains until it re-opens later.