Markets recover nerve after airliner crash
Markets around the world have bounced back after suffering losses following the crash on Monday of an American Airlines Airbus in New York.
Switzerland's blue-chip Swiss Market Index was trading up more than two per cent by mid-afternoon on Tuesday after suffering a 1.8 per cent decline earlier.
Markets in London, Paris and Frankfurt were also wiping out the previous day's losses as investigators pointed to an accident rather than terrorist activity as the cause of the tragedy.
Airline companies and insurance firms, which bore the brunt of Monday's selling mood, led the recovery.
European markets were also helped by the New York market, which lost just half a per cent on Monday.
But the swift and negative reaction of the markets highlighted their fragility and analysts said the recovery might not be sustained.
"Europe's reaction was an overreaction," said Rudi Bustorf of Coutts Bank Switzerland, "I am not sure whether this is a bottoming out process or whether a long-term sideways trend is still intact. But you should not expect too much on a short-term basis."
Most stock markets have recovered to their pre-September 11 levels but some analysts see the SMI rally as overdone.
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