A terrible start to the week on Europe’s stock markets as banks and mining shares slumped. It was put down to a mixture of profit-taking and uncertainty over the still-bedridden financial sector.
Insurers also fell, and the higher dollar helped oil to drop, taking energy stocks with it. Uncertain demand contributed to the falls in energy and mining, with copper alone losing two and a half percent in a weakened metals sector. The late March/early April rebound in prices now looks too far, too fast, and analysts say the markets will remain bumping around at the bottom for at least another quarter, and maybe two before a clearer picture emerges. Both Paris and Milan fell by more than four percent, Frankfurt by nearly four, and London by over two and a half percent.