Markets bounce back

19/07/11 15:34 CET

economy

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The financial markets enjoyed a bit of a rebound on Tuesday, clawing back some of their recent big losses.

Investors hope Thursday’s euro zone summit will complete a second bailout for Greece and stop the sovereign debt crisis from spreading to larger economies like Spain and Italy.

Patrizio Pazzaglia, money manager at Bank Insinger de Beaufort NV in Rome, is not sure the rebound will last: “We think that it is a technical rebound and of course we hope to continue, but there is a lot of volatility so we are monitoring the situation.”

The euro was up, with foreign exchange traders torn as they balance the debt concerns on both sides of the Atlantic.

An indication that investors remain rather nervous is that gold – seen as a safe haven in times of economic uncertainty – continues to attract buyers.

More about: Economic crisis, European markets, Eurozone in crisis

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