Equities around the world jumped yesterday and the euro tumbled on signals the European Central Bank may accelerate its €1tn bond-buying programme over the next two months.

The euro slid to a three-week low against the dollar and fell versus the yen yesterday after European Central Bank president Mario Draghi highlighted downside risks to eurozone growth and said monetary policy would stay accommodative.

World shares and the euro fell yesterday as traders turned their focus to the festering fiscal problems in the US and Europe after the re-election of President Barack Obama signalled no dramatic shift in US economic policies.

The euro hit a four-month high yesterday after Germany’s top court greenlighted Europe’s new bailout fund, while hopes for more monetary stimulus from the Fed at its meeting today supported stocks.

Stocks and the euro fell yesterday as investors worried about details of a €100bn deal to shore up Spain’s banks, prompting traders to cash in hefty gains triggered by the widely expected deal.

STANDARD & Poor’s (S&P) is to warn that Germany and France may be stripped of their triple-A credit ratings as the debt crisis prompts all 17 euro nations to be put on review for a possible downgrade, said two officials familiar with the S&P decision.

UNEXPECTEDLY weak US job numbers for August yesterday reinforced fears of recession, driving investors out of stocks and into the safety of bonds, gold and the Swiss franc. World stocks fell nearly 2 percent after the US Labour Department said employers added no new jobs in August and July’s figure was revised lower.

The price of gold has surged recently as nervous investors scramble for a safe haven but only time will tell if we are about to witness yet another bubble similar to that in property or tech stocks, writes Kyran Fitzgerald

Inflation is not likely to be a serious concern and the Federal Reserve can stick to its plan to introduce measured increases in the benchmark interest rate, Federal Reserve chair-man Alan Greenspan said in a statement yesterday.

THE dollar had its biggest advance against the yen in three weeks in New York after Japan sold its currency for a second day to protect exporters.

In London, European government bonds have regained losses in thin trading.

European government bonds slid in late London trade as investors decided to take their profits amid a better performance on stocks, dealers said.

A war against Iraq may not help the dollar as much as it did during the 1990-91 Gulf Crisis, according to research published this morning by Morgan Stanley.