Selling was the predominant activity on the UK stockmarkets today and the FTSE 100 only managed to p...
Selling was the predominant activity on the UK stockmarkets today and the FTSE 100 only managed to pull back a fraction from the five-month low clocked up this morning.
Oil and banking stocks were the bad boys today, after several analysts dropped recommendations on Abbey National and Lloyds TSB, sinking their share prices 3.3% to £10.95 and 3.1 to 792p respectively, and the price of crude oil fell again, largely thought to be because of the new supply available from Iraq.
BP suffered yet more losses and fell 3% to 576p after the price of a barrel of crude in June fell 3.3% to $24.90.
The FTSE 100 closed down 83.2 points or 1.6% to 5119.9, wiping many of the gains the market has been fighting to make up over the last five months.
Vodafone, which was previously one of the darlings of the industry, is now suffering more than ever and looks set to stay under £1 mark at 95.25p, while Prudential, usually one of the stronger financial stocks, also took a knock and saw its share price fall 1.7% to 700p after JPMorgan cut its rating to underperform.
Things look somewhat better in the US after government reports show higher productivity and lower labour costs than many expected have in fact boosted confidence of an economic recovery.
Cisco and Intel led the gains on the S&P 500 index which rose 4.86 points or 0.5% to 1057.57while the Dow Jones added 45.15 or 0.5% to 9853.91. The Nasdaq also climbed 0.8% to 1590.78, largely because say stocks now look cheap after last week's falls wiped a substantial sum of the value of certain stocks.
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