Europeâ€™s stock markets and oil prices rebound rebounded on Thursday after a turbulent few days that wiped trillions off companiesâ€™ oil share values.
That followed European Central Bank President Mario Draghiâ€™s comments which raised hopes of further monetary stimulus.At the same time oil rebounded from Wednesdayâ€™s more-than-12-year lows.But nobody knows if the volatility is over.At the World Economic Forum in Davos there is much hand-wringing and fear for the future.
Hussain Al Nowais from the United Arab Emirates is chairman of Al Nowais Investments, a private regional holding company based in Abu Dhabi. He said there were several reasons for the slump: â€œThe drop of oil prices, the Chinese economy slowing down, tightening liquidities of the bank, all are affecting the economy. I hope the picture will look brighter as we go on in the year, but for the moment it doesnâ€™t look bright.â€
John Nelson, the chairman of the Lloydâ€™s of London insurance group, he said: â€œWhat I myself am nervous about is that if we continue to get these market jolts it will begin to undermine consumer confidence in some of the developed world.â€
Yet, Nelson added: â€œThere are some concerns about the Chinese financial structure â€“ banking structure â€“ but if you look at the world generally the strength, the financial strength, of financial institutions is much stronger than it was say seven or 10 years ago.â€
For now the consensus among business leaders and policymakers in Davos that currently we are not heading into a repeat of the 2008 financial crisis, but that governments have to act quickly and decisively to prevent the worst occuring.
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