European shares were initially driven higher on hopes the U.S. Federal Reserve would produce fresh stimulus measures to help support sluggish economic growth before tumbling after weak US jobs data spurred renewed concerns that the world’s largest economy is slipping into recession.

FTSE Futures initially traded higher though volume was low and other Eurozone markets fell as weak demand at an Italian bond auction and a slump in U.S. consumer data weighed.

British banks had been one of the main performers on the upside. Royal Bank of Scotland was the top riser boosted by a Deutsche Bank upgrade to “buy” from “hold”. Worries about the Eurozone peripheral debt crisis, however, left Italian banks among the bottom performers after a bond auction in Italy drew weak demand.

Bouygues jumped 15.8 percent to become the top riser in volume seven times its 90-day daily average after the French conglomerate announced a share buyback following a slump in its share price.

The American markets have also not escaped the clutches of the pessimistic investors. Clear patterns have built up within the recent up side corrective move. Although there is still some possibility for another drive up all will depend on how the next week or so pans out & if price support levels can be maintained.

According to a City Index CFD trading report, “Not being able to clear over the key 11365 mark to aim for 11950 puts the Dow Jones in a tough situation. The 11675 – 11730 range has stalled, The recent rallies have offered selling opportunities & if the Dow Jones Futures falls below 10800 then the decrease could certainly get very serious. The opportunity to see 10430 could certainly become reality quicker than anticipated if the stock market index fails to get above 11365. Like other stock market indices the important point to remember is that we are in an intermediate-term bear trend.”

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