They feel that the $700 billion is just the start and that they would need to put in more to further stabilize the market.
Another reason for the weakness is the rise in oil prices, which rocketed $20 yesterday and saw the Euro with the biggest gain so far this year. Also US stocks fell with the price rise of oil. On the data front, US national activity index fell -1.59 in August, largest since last US recession.
The Euro gained in strength, the largest gain this year. The rally in oil also helped this. The low of the day against the US $ was 1.4438 and 1.4438 and ended on 1.4800 in New York session.
The Sterling became stronger on the news coming out of the US despite weak data coming out of the property market. Index fell -1.0 in September according to Rightmove. The sterling went through 1.85 the high of 1.8630 and ending the day at 1.8580