Market Joy Fades on Renewed Doubt

That was short-lived.  After a start to the week that contained more ‘TGI Friday’ feeling than ‘Monday Blues’, with markets surging on the back of the large EU rescue plan, today the day started with muted tones.

Investors, it seems, aren’t so sure after all that the loan package put together by EU finance ministers and the ECB over the weekend is enough to have a lasting positive effect on the troubled euro zone region.  Sure, it is argued, there is now a security blanket on hand for suffering economies but a long term solution isn’t certain just yet.

The morning got going with many investors heading back to the US dollar and away from the euro, the pound and the Australian dollar.  Oil fell to nearly $76 a barrel while spot gold remained sky high as the ultimate safe haven.

Meanwhile in the UK, Gordon Brown has finally relented and plans to hand in his resignation as leader of the Labour party.  This comes despite the news that Lib Dem leader Nick Clegg is now seeking talks with Labour while continuing discussions with Conservatives.  ‘King Maker’ really does seem to be a fitting description for Nick Clegg at this time.

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