Stock market volatility continues

US stocks have closed higher, but European markets have continued to suffer from worries over oil prices and economic growth.

The three main US indexes all gained between 1.4% and 2%, lifted in part by a 2% rise in the US oil price.

Earlier in London, the FTSE 100 closed 0.7% down, while the main Frankfurt and Paris indexes fell 1.7% and 1.8%. Those falls followed a heavy sell-off in some Asian markets. The pound hovered close to five-and-half-year lows against the dollar.

Alongside the rise in the price of US West Texas Intermediate crude, Brent oil also rose in afternoon trading.

The price was up 2.5% to $31.03 a barrel, having briefly drifted below $30 on Wednesday.

The falls in European shares followed overnight losses in Asia. Japan's Nikkei index closed down 2.7%, having dropped more than 4% at one point.

Bourse remains downward

The Colombo Bourse continued its downward trend throughout the new year with both indices recording a decline during the shortened week which ended on Thursday. The bench mark All Share Price Index dropped 4.2% WoW to close at 6446 while the S&P SL 20 index lost 5.0% WoW to end the week at 3340. Market analysts said with international markets expected to continue to remain volatile during next week, the ASPI could experience further declines before bottoming out. Both indices on Thursday were down on a turnover of Rs. 978.8 million with the ASPI losing 108.17 points (1.65%) and S&P SL20 down 61.29 points (1.80%) with 158 losers against 38 gainers.