Financial markets suffered further uncertainty this week as a tentative improvement in risk appetite prompted by US efforts to stimulate the economy and stabilise the banking system was undermined by fresh signs that the global slowdown was worsening.
Banking stocks saw hefty gains amid mounting hopes that the US was near to establishing a “bad bank” to ring-fence toxic assets. Another positive came from the passage of US President Barack Obama’s $819bn stimulus package through Congress, although analysts noted that the bill still faced hurdles in the Senate.
