A lone passenger waits at Euston station in London as a member of the RMT Photo: Stephen Russo/PA Images via Getty Images
European stock markets rose on Tuesday amid the UK’s biggest nationwide rail strike in 30 years.
In London, the FTSE 100 (^FTSE) was up 0.4% after strong gains in the previous session, while in Paris the CAC (^FCHI) was up 1.1% and Frankfurt’s DAX (^GDXI) was up 0.8% % gained.
This comes amid an ongoing controversy over the salary, work and conditions of railroad workers. So far, 18 months of talks have taken place between Network Rail and RMT Union.
Thousands of workers left today, paving the way for broader industrial action across the economy in the coming months. Most of the London Underground’s lines have also been largely closed due to a separate strike.
The Center for Economics and Business Research has warned that three strikes today, Thursday and Saturday, will impact the UK economy by at least £91million.
Richard Burge, chief executive of the London Chamber of Commerce and Industry, said: “While this strike will be damaging, there is a possibility of a recession; So I wouldn’t call this strike a definitive recession.
However, what is very worrying is that this controversy continues throughout the year and we will see many attacks in the future.”
Meanwhile, Transport Secretary Grant Shapps told Sky News: “We will take steps to ensure that things like this are less harmful in the future.”
Watch: Deserted train stations as Brits face major travel disruptions due to a rail and tube strike
Across the pond on Wall Street, S&P 500 futures (ES=F) are up 1.5%, Dow futures (YM=F) are up 1.4% and Nasdaq futures (NQ= F) up 1.6% when trading started in Europe.
US markets were closed for a holiday on Monday, but quick action by Federal Reserve officials is raising concerns about global growth.
This comes after Fed Governor Christopher Waller stressed the Federal Reserve’s determination to cut inflation, suggesting they would risk a recession to do so.
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A general feeling of gloom has roiled US markets so far, with the Dow Jones down 18%, the S&P 500 down 23% and the Nasdaq down 30%.
Continue reading: Despite record inflation, British companies are reluctant to raise prices
Equities in Asia were mixed overnight, with current fears of a sharp slowdown partially offset by hopes that Chinese officials are willing to offer some monetary support.
The Nikkei (^N225) was up 1.8% on the day in Tokyo, while the Hang Seng (^HSI) was up 1.6% in Hong Kong and the Shanghai Composite (000001.SS) was down 0.3%.
See: How does inflation affect interest rates?