Markets stabilise after short selling ban

With short selling banned in some European countries (not the UK) for a limited period and Italy having just passed an austerity package into law, the early signs are that most markets will open positive.

The short selling ban however is only for 15 days so there is no feeling that the solution to Eurozone and US debt has been found and the unprecedented volatility could easily return, but maybe not this week.

There is widespread loss of confidence in the ability of leaders to avert  another credit crisis, having less tools at their disposal to do so, with little downward interest rate movement possible.

The Fed confirming that they will hold their rates at current low levels for two years will help but is unlikely to provide long term support.