European markets up as Strauss-Kahn quits IMF

European markets climbed this morning on news IMF head Dominique Strauss-Kahn had resigned following sex crime allegations.

In London, the FTSE 100 gained 0.69% to reach 5,965, while the French Cac 40 index hit the 4,000 mark, a gain of 0.57%. The German Dax rose 0.65% to 7,351.

Strauss-Kahn has been accused of attempted rape of hotel maid in New York and is being held in New York's Rikers prison. He denies the allegations and said he will fight to clear his name.

Europe's recovery follows a rebound on Wall Street yesterday as the the Federal Reserve indicated it would continue to keep interest rates low.

The Dow Jones gained 0.65% to reach 12,560, while the S&P 500 climbed 0.88% to 1,341. The Nasdaq Composite Index gained 1.14% to reach 2,815.

News of Japan's slide into recession following the devastating tsunami in March was felt across the Asian markets. Japan's Nikkei 225 slid 0.43% to 9,620.82.

Gross domestic product in Japan contracted 0.9% in the first quarter of 2011, according to Japan's Cabinet office, resulting in an annualised rate of contraction of 3.7%, the second quarterly contraction in a row.

Meanwhile, commodities were slightly up this morning, with the price of Brent Crude oil rising 0.3% to reach $112.63, while gold climbed marginally, up 0.01% to reach $1,495.70.