The downturn in the equities markets is not yet over, according to one expert.
A market strategist is warning investors that stock markets could remain volatile for some time. Joshua Raymond from City Index said recent gains in share prices were inevitable following sharp declines, but the markets are not yet out of the woods.
His comments come as economic concerns caused a reverse of the two-day recovery in the stock markets. Mr Raymond said this acts as evidence that calling an end to the downturn would be premature.
Indeed, he said that after slumping more than 21 percent in the space of a week, a revival in market values was expected. But economic pressures are not restricted to the banking industry and the housing market, which means further bad news could yet emerge from other sectors.
"The brief recovery on equities has removed a large degree of the panic that crashed the markets last week, but that same fear has persevered and this has been demonstrated this morning," Mr Raymond remarked.
Matt Buckland, a dealer at CMC Markets, told the Associated Press that after a "bumper" start to the week, a reversal seems likely. Other European stock markets have also fallen today. By 11.30 BST the Cac 40 in Paris had dropped by 2.6 percent, while Frankfurt's DAX index had registered a decline of 2.86 percent.
