Frustration is mounting in the City.
London’s stock market has now been frozen for an hour — leaving traders unable to buy and sell shares in the 350 biggest companies listed on the FTSE.
And they’ve still not said what’s gone wrong, or when the problem will be fixed.
The London Stock Exchange still hasn’t got its systems working.
It has just told traders that the next update will come at 9.15am BST.
The technical outage in London is preventing UK stock traders from joining in today’s market rally.
As you can see, every other major European stock index is higher this morning – as shares recover some of this week’s heavy losses.
Craig Erlam of trading firm OANDA warns that the markets could soon turn volatile again – so the LSE needs to fix its problems, fast:
Investors are more relaxed this morning than they’ve been for the rest of the week but it would be naive to expect it to continue. There’s been plenty of whipsaw action this week so to assume today will remain calm may be asking a bit much.
The FTSE failed to open on time on Friday due to a potential trading service issue. Unfortunately, I don’t think we can blame Brexit for this one but maybe I’ll be proven wrong.
Nothing is moving on the FTSE 100 this morning, as the LSE scrambles to work out what’s gone wrong.
The LSE says it is “currently investigating a potential trading services issue”, which is stopping investors buying and selling shares this morning.
London Stock Exchange hits problems
There’s a problem at the London stock exchange!
Trading has been delayed, due to a “potential Trading Services issue”. It should have begun at 8am sharp.
It’s not clear, yet, what’s gone wrong — but the glitch appears to be stopping investors from trading in companies on the FTSE 100 index, or on the smaller FTSE 250.
More to follow….
The prospect of a new ECB bazooka is acting like catnip to European traders.
Germany’s DAX index has jumped 0.4% in early trading, while Paris’s CAC and Milan’s FTSE MIB are both 0.3% higher.
Spain’s IBEX is also in the green, as Olli Rehn’s promise of a “strong” stimulus programme reassures the markets.
Introduction: Stimulus hopes brings calm to markets
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
After a turbulent few days, calm is returning to the markets today on hopes that central bankers could rescue us from a recession.
Investors are calculating that institutions such as the European Central Bank could step up to the plate with new measures to ward off a downturn.
Olli Rehn, Finland’s central bank governor, has got everyone excited by promising that the ECB will unveil a wide-ranging stimulus package at next month’s meeting.
Rehn, who sits on the ECB’s governing council, hinted that the plan could exceed market expectations, given the scale of the situation.
He told the Wall Street Journal:
“It’s important that we come up with a significant and impactful policy package in September.
When you’re working with financial markets, it’s often better to overshoot than undershoot, and better to have a very strong package of policy measures than to tinker.”
So, faced with a slowing economy and a possible recession in Germany, the ECB is poised to restart its bond-buying stimulus programme and slash interest rates deeper into negative territory in a bid to make banks lend.
Rehn suggested we should expect “substantial and sufficient” bond purchases — a major topping up of the punch bowl.
The WSJ dubs it a ‘big bazooka’ primed to go off in September.
Rehn’s words have helped to calm Asia-Pacific markets. Japan’s Nikkei closed flat, while China’s market gained 0.5%, clawing back some of Thursday’s heavy losses.
European markets are expected to rally this morning too, having sunk to six-month lows earlier in the week.
Otherwise it looks quiet, beyond new trade data from Europe and a new survey of American consumer confidence — which may show if people have been spooked by recent market turbulence.
- 10am BST: Eurozone trade balance for June (expected to dip to €18.6bn, from €20.2bn).
- 3pm: University of Michigan consumer confidence survey (expected to drop to 97.0, from 98.4)