Bears in control as prices tumble
Bank leaves rate unchanged as US helps FTSE
Thur close: An uplift on Wall St today helped the FTSE 100 recover some of its earlier losses.
U.S. stocks rebounded, led by energy stocks, while financials rose after upbeat results from JPMorgan Chase & Co.
The S&P 500 enjoyed its biggest daily percentage gain since December, up 1.67% to close back above 1,900.
The Dow Jones industrial average was up 227.64 points, or 1.41% and the Nasdaq Composite rose 1.97%.
Earlier, the FTE 100 plummeted by more than 110 points at one point but ended the day down 42.74 points at 5,918.23.
The Bank of England left interest rates unchanged with Ian McCafferty once again voting in favour of a rise against eight members of the MPC who felt deteriorating conditions in the global economy meant this was not the time to tighten policy.
The FTSE 100 was helped by signs of recovery in the oil price, which was trading at $31 a barrel, up 2.2% on the day having fallen below the $30 for the first time in nearly 12 years overnight.
Oil has been a big factor in dragging down stock markets. It is now down by 73% since peaking at $115 in the summer of 2014. The more pessimistic analysts say it could fall as low as $10.
There have been warnings that the global economy could be facing a repeat of the 2008 crash. RBS told its clients to sell everything ahead of a potentially cataclysmic situation emerging. Investment banker Andrew Roberts said markets could fall by a fifth.
However, some analysts in the US are refusing to acknowledge a bear market and are calling the bottom in some sectors such as energy, technology an financials and point to robust figures from companies.