Markets stabilise despite Japanese dive

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Japanese equities tumbled last night after a second day of market volatility, but the move in Asia failed to drag UK markets lower this morning as traders drew a line in the sand following savage falls over the past week.

The Nikkei 225 closed down 1.4% at 14,536.9, with Fujifilm the biggest faller. It comes as a Reuters poll found Japanese business confidence has dropped to its lowest in more than a year. The index is down 8.5% in a month.

But this morning there were signs a pause in the selling at the very least, with the FTSE 100 up 12 points at 6,208 shortly after opening.

Retailers and energy firms topped the risers, while Rolls Royce weighed on the blue chip index after it warned it would not return to growth next year.

The respite was welcome after a volatile week which culminated yesterday with a 0.25% fall for the FTSE after a recovery from lows seen earlier in the day.

Overnight, the Shanghai Shenzhen CSI 300 also dipped 0.2%, while in the US, the Dow Jones was down 0.2%.

However, the S&P 500 and the NASDAQ were both marginally up at 0.01% and 0.1% respectively.

The mixed picture may reflect the publication of some positive US data, showing industrial production in September rose 1% and weekly jobless claims dropped to a 14-year low. 

There are also undoubtedly some bargains to be had following the sharp declines seen in the past month which are now enticing buyers.

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