The FTSE 100 failed to respond to the cut in interest rates announced in the US yesterday. Lond...
The FTSE 100 failed to respond to the cut in interest rates announced in the US yesterday. London's leading index was down 32 points to 5182 at morning trade with bank, media and software shares looking particularly weak.
Onlookers concluded that the US rate cut had already been largely priced into the market. FTSE 100 fallers were led by Pearson, down 31p to 846p, BSkyB fell 26p to 811p and Logica dropped 25p to 792p. Scottish Power set the pace for the FTSE 100 gainers, however, with a rise of 27p to 422p.
Over on Wall Street on Tuesday all the key US indices finished higher, cheered by the Federal Reserve's decision to cut rates by an aggressive 50 basis points. This leaves current interest rates at 2% and still with the potential to fall further.
The tenth US rate cut this year had been widely anticipated but it managed to inspire a Dow Jones gain of 150.09 to 9,591.12, the Standard & Poor's 500 lifted 15.90 to 1,118.74 while the Nasdaq rose 41.44 to 1,835.09. Hewlett-Packard fared especially well on the day, after it surged 17.2% to $19.81.
The US rate cut wasn't so well received in Tokyo on Wednesday where the Nikkei 225 fell 3.28% or 348.74 to 10,284.98. Banks and telecom stocks spearheaded the decline. Investors are not happy yet that the bad loan problem that has riddled the banking sector is over.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected