Jupiter's de Blonay: ECB actions not enough

Jupiter's Guy de Blonay has called for European authorities to take further action in supporting markets or the sovereign debt crisis will spread to other eurozone economies.

The group's £752m Financial Opportunities manager said he suspects markets agree further measures need to be implemented following yesterday's reaction to the steps taken by the European Central Bank.

The Bank bought up government bonds and offered unlimited short-term loans to banks until at least the year end while it maintained interest rates at 1.5% following pressure to prevent the escalating debt crisis.

"If this was enough the market and the euro would have been up yesterday but they were both down," de Blonay said.

"I suspect the market does not think it is enough. The support fund ECB is putting forward needs to be increased by four or five times for the market to be reassured."

He does not expect further or more dramatic measures, such as quantitative easing, to be announced until September at the earliest when the holiday season is over and, in the meantime, investors will have to "sweat through the volatility".

"Sovereign risk issues are not only about Greece, Ireland and Portugal but also Italy, Spain and now Belgium. Unfortunately the market is dependent on intervention and authorities need to take action to bring confidence to the market."