to cope

After yesterday´s bounce US stock markets are selling-off again as the gains in the morning session evaporated during the afternoon. The effects of the 75 point rate cut on Tuesday plus the stimulus package announced by the Bush Administration did not last for more than one day. European stock markets are expected to open down on Monday.

The subprime credit crisis remains the major concern for markets. Banks are at the centre of recent turmoil. A prop trader at Société Générale, one of European largest banks, lost 5 billion euros of the bank´s funds during this week´s rout. BPI, one of the major Portuguese banks, announced today a new share issue to cope with statutory requirements. It fell 6% for the day and is down more than 30% since the start of the year.