Markets urged to stay calm after attacks<\/p>\n
Agence France-Presse, New York<\/p>\n
World financial leaders appealed for calm on Thursday after
\nmarkets were left badly shaken by a series of deadly bomb blasts
\nthat ripped through London, Europe's foremost trading center.<\/p>\n
European Central Bank president Jean-Claude Trichet said there
\nwas no need for special action by the ECB or the Bank of England,
\nwhich both left interest rates steady on Thursday, but that they
\nstood ready to intervene if necessary.<\/p>\n
\"We mustn't allow the situation to get out of hand by acting
\nwrongly or panicking,\" German Finance Minister Hans Eichel said.<\/p>\n
\"The global economy is not going to be knocked out of kilter,\"
\nhe insisted, adding that finance ministers were in contact with
\ntheir respective central banks after Thursday's rush-hour
\nbombings that killed at least 37 people.<\/p>\n
European stock markets plunged, sterling slid against major
\ncurrencies and oil prices plummeted from record peaks reached on
\nWednesday owing to concerns that the attacks would dent global
\ngrowth and discourage airline travel.<\/p>\n
But by the end of trade in New York, the contract for light
\nsweet crude for delivery in August was down only 55 U.S.cents at
\nUS$60.73 a barrel as traders refocused attention on a hurricane
\nbearing down on the Gulf of Mexico.<\/p>\n
U.S. Treasury Secretary John Snow said his department was
\nmonitoring global markets in the wake of the \"horrific\" bomb
\nattacks on London underground trains and a double-decker bus.<\/p>\n
Snow said during a visit to Omaha, Nebraska, that \"these
\nhorrific acts stand in stark contrast to the compassionate work\"
\nat the Group of Eight summit in Scotland in trying to alleviate
\nglobal poverty.<\/p>\n
In London, the FTSE 100 share index closed 1.38 percent down
\nat 5,158.3 points. The Frankfurt DAX 30 fell 1.85 percent to
\n4,530.18 points, while in Paris the CAC 40 dropped 1.39 percent
\nat 4,220.62 points.<\/p>\n
Shares in the British travel and tourism sectors were among
\nthe biggest fallers with British Airways, cruise-ship group
\nCarnival, the Hilton hotel group and Intercontinental Hotels all
\nslumping.<\/p>\n
Insurers also took a tumble on worries over the potential
\nliabilities stemming from the London bombs.<\/p>\n
Wall Street was more phlegmatic with both the Dow Jones and
\ntech-laden Nasdaq averages regaining positive territory after
\nheading down earlier.<\/p>\n
\"Unfortunately, western societies have come to expect some
\ntype of terror attack somewhere from time to time,\" broker Ryan
\nBeck and Co. said in a research note.<\/p>\n
\"As a result, terror risk premiums already exist in all
\nfinancial markets,\" it said.<\/p>\n
Sterling fell sharply on news of the blasts, remaining under
\npressure after the Bank of England's decision to keep British
\ninterest rates on hold at 4.75 percent for the 11th month in a
\nrow.<\/p>\n
The pound stood at 1.7437 dollars in late New York trading
\nafter falling to as low as $1.7404 in Europe, from 1.7532 late on
\nWednesday in New York.<\/p>\n
The euro inched up to $1.1938 from 1.1930 late on Wednesday.<\/p>\n
The European Central Bank held its ground on Thursday keeping
\nits key rate steady at 2.0 percent for the 25th month running
\ndespite fierce political pressure for a cut to bolster the
\nfaltering eurozone economy.<\/p>\n
Trichet said he had contacted both Bank of England chief
\nMervyn King and U.S. Federal Reserve chairman Alan Greenspan
\nfollowing the attacks.<\/p>\n
\"At this stage, we have no information that would be calling
\nfor action,\" he said. \"If it were the case, you can be sure that
\nwe would do that in real time.\"<\/p>\n
In the wake of the September 11, 2001 attacks in the United
\nStates, the Fed and ECB led major central banks in pumping extra
\nliquidity into the markets and a week later, cut interest rates
\nin a coordinated move to boost confidence.<\/p>",
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