The Stock Exchange Is Creaking Into Life!
The FTSE 250 index (which contains mid-sized companies) just rose by 0.01% – a teensy change, which means something has started trading.
Reuters points out that today's outage is the longest since February 2011, when the market was shut down until lunchtime.
LSE: Opening auction now underway
BREAKING: The London Stock Exchange says an opening auction is underway now.
A signal that the unexplained problem might be fixed, and that trading could begin soon.
And not before time – this is already the longest outage in eight years!
Neil Wilson, analyst at Markets.com, agrees that the outage is frustrating:
Still waiting … the FTSE cash equity market has failed to open and remains closed for the time being. The FTSE 350 is closed but AIM trading is still ok.
These things happen – the last delayed start to trading was only a year ago. Technical glitches are inevitable, frustrating as it is for everyone.
Wilson also points out that Footsie SHOULD is rallying, having slumped to a six-month low of 7067 points last night.
FTSE futures are trading – and our fair value estimate suggests the cash market will open up strongly around 7115.
Frustration is mounting in the city.
London's stock market is now frozen for an hour – leaving traders unable to buy and sell shares in the 350 largest companies listed on the FTSE.
And they still haven't said what went wrong, or when the problem will be fixed.
The London Stock Exchange still has got its systems working.
It has just told traders that the next update will come at 9.15am BST.
The technical outage in London is preventing UK stock traders from joining today's market rally.
As you can see, every other major European stock index is higher this morning – as stocks recover some of this week's heavy losses.
Craig Erlam of trading firm OANDA warns that the markets could soon turn volatile again – so the LSE needs to fix its problems, fast:
Investors are more relaxed this morning than they were about to rest the week but it would be naive to expect it to continue. This week so many of the whipsaw actions have been expected to remain calm may be asking a bit much.
The FTSE failed to open on Friday due to a potential trading service issue. Unfortunately, I don't think we can blame Brexit for this one, but maybe you can be proven wrong.
Nothing is moving on the FTSE 100 this morning, as the LSE scrambles to work out what's gone wrong.
The LSE says it is currently investigating a potential trading services issue, which is stopping investors buying and selling shares this morning.
London Stock Exchange hits problems
A problem at the London stock exchange!
Trading has been delayed, due to a “potential Trading Services issue”. It should have fled at 8am sharp.
Not yet clear, yet, what went wrong – but the glitch appears to be stopping investors from trading in companies on the FTSE 100 index, or on the smaller FTSE 250.
More to follow ….
The prospectus for a new ECB database is acting like a catnip to European traders.
Germany's DAX index has jumped 0.4% in early trading, while Paris's CAC and Milan's FTSE MIB are both 0.3% higher.
Spain's IBEX is also in the green, as Olli Rehn's promise of a "strong" stimulus program reassures the markets.
Introduction: Stimulus hopes bring calm to the markets
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
After a turbulent few days, calm is returning to the markets today on hopes that central bankers could rescue us from a recession.
Investors are calculating that institutions such as the European Central Bank could step up to the plate with new measures to ward off a downturn.
Olli Rehn, Finland's central bank governor, has got everyone excited about promoting that the ECB will unveil a wide-ranging stimulus package at next month's meeting.
Rehn, who sits on the ECB's governing council, hinted that the plan could exceed market expectations, given the scale of the situation.
He told the Wall Street Journal:
“It is important that we come up with a significant and impactful policy package in September.
When working with financial markets, it is often better to overshoot than undershoot, and better to have a very strong policy package than tinker. ”
So, faced with a slowing economy and a possible recession in Germany, the ECB is poised to restart its bond-buying stimulus program and slash interest rates deeper into negative territory in a bid to make banks lend.
Rehn suggested we should expect substantial and sufficient bond purchases – a major topping of the punch bowl.
The WSJ dubs it a 'big bazooka' primed to go off in September.
Rehn's words have helped calm Asia-Pacific markets. Japan's Nikkei closed flat, while China's market gained 0.5%, clawing back some of Thursday's heavy losses.
European markets are expected to rally this morning too, with a gust to six-month lows earlier in the week.
Otherwise it looks quiet, beyond new trade data from Europe and a new survey of American consumer confidence – which may show if people have been spooked by recent market turbulence.
- 10am BST: Eurozone trade balance for June (expected to dip to € 18.6bn, from € 20.2bn).
- 3pm: University of Michigan Consumer Confidence Survey (expected to drop to 97.0, from 98.4)