Mar­ket tur­moil likely to force Car­ney to aban­don ECB meet­ing

Pakistan Observer - - ECONOMY WATCH -

LONDON—Bank of Eng­land gover­nor Mark Car­ney is ex­pected to aban­don plans to fly to Por­tu­gal for a sum­mit of cen­tral bankers, amid fears of fur­ther tur­moil when mar­kets open on Mon­day.

With ex­pec­ta­tions that the FTSE 100 in­dex could open al­most 3% lower on Mon­day, the gover­nor was weigh­ing up whether to stick to his plans to at­tend the Euro­pean Cen­tral Bank’s an­nual sum­mit in Por­tu­gal on Wed­nes­day.

Car­ney, who was quick to make a pub­lic state­ment on Fri­day af­ter the Brexit vote sent shock waves through fi­nan­cial mar­kets, seems un­likely to carry on with his sched­ule to at­tend the last day of the three­day meet­ing in Por­tu­gal which starts on Mon­day.

At one point on Fri­day morn­ing as the re­sult be­came clear, ster­ling dived to 30-year lows and the FTSE 100 was off al­most 8%. Al­though by the end of the week the stock mar­ket ended where it had started. Even so, an an­a­lyst at Dow Jones in­dices had cal­cu­lated that the $2tn (£1.4tn) wiped off global mar­kets on Fri­day was the worse on record, sur­pass­ing the losses on 29 Septem­ber 2008 dur­ing the height of the bank­ing cri­sis. Car­ney was in Basel, Switzer­land, for a meet­ing of cen­tral bank gov­er­nors over the week­end, where he was ex­pected to have dis­cussed the im­pli­ca­tions of the his­toric vote on 23 June.—Agen­cies

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.