Stock markets enjoyed further gains yesterday as persistent worries about the health of the financial sector were offset by better earnings news from the broader market.
Much of the day's focus, particularly in the government bond and currency markets, was on the UK as Alistair Darling, chancellor, announced a more serious deterioration of the nation's finances than many had expected.
But the chief uncertainty for global investors remained the outlook for the banking system as they braced for the forthcoming results of “stress tests” on US financial institutions. Disappointing earnings from Morgan Stanley added to the mood of disquiet.