Stock markets are again under pressure this morning as the U.S. markets reversed strong gains last night to finish down. The Dow Jones Industrials closed at 9,899 down 41 points after being up more than 100 points earlier in the session. The only reasons for the switch in sentiment seem to have been a weakening euro (back below the $1.20 level) and a huge sell off in BP shares on dividend cut or even bankruptcy fears which sent it to a 14 year low. BP was forced to issue a statement this morning that it was financially strong, had good cash flows and had a borrowing level below target. It opened down over 30p to £3.38 but has since recovered to £3.68. A buy for the portfolio was made on the weakness which now seems overdone since its seems unlikely the firm would ever go bust despite the Gulf of Mexico liabilities.
The FTSE 100 is currently down 31 points to 5,057 after moving below 5,000 in early trades.
