DEBORAH MARCHINI, CNN ANCHOR: The European market is sharply lower following on the heels of better-than-3-percent losses for the major U.S. indices yesterday. Chris Swann of the "Financial Times" joins me now from the "FT"'s London newsroom to tell me what's behind the selling. Chris, what's the predominate factor?</s>CHRISTOPHER SWANN, "FINANCIAL TIMES": Well, it's difficult to tell, really. It seems to be mainly the oil and uncertainty in the Middle East. The losses have been more contained than they were in the states, and European stocks overall down about 1.3 percent. And but we have seen a continued flight to safety. And the main casualty of this have been IT stocks as traders ditch what are perceived as slightly riskier stocks. IT sector is down about 4 percent this morning. And the main sectors holding their own have been the more defensive stocks; so packaging, food and beverages. The big gainer on the London Stock Exchange this morning have been the London Stock Exchange itself. After OM, the Swedish technology group, lifted its bid for the company, the shares have lept about 10 percent.</s>MARCHINI: All right, Christopher, usually a flight to safety in the markets corresponds with a rise in the value of the dollar, but not today. The European currencies are gaining ground against the dollar, and especially the British pound. Why?</s>SWANN: Well the -- this normally relates to the fact that the dollar is perceived to have a greater dependence on oil, and U.S. economic growth is likely to be hit harder by the rise in the oil price. But the dollar is gaining some of these safe-haven flows. But the lion's share of the safe-haven flows are going either to the British pound or to the Swiss franc.</s>MARCHINI: All right, thank you. Christopher Swann, reporting live from the "FT"'s London newsroom.
'Financial Times': European Markets Sharply Lower As Investors Take 'Flight to Safety' Due to Middle East Uncertainty