Consumer attempts to reign in spending are causing concern in the UK stockmarkets this morning that ...
Consumer attempts to reign in spending are causing concern in the UK stockmarkets this morning that the economic recovery may now be slower than hoped.
After this morning's open, the FTSE 100 fell to a nine-month low as BP and Vodafone led the decline.
The FTSE 100 Index dropped 58.5 points, or 1.3%, to 4521.8 after sliding to 4506.3, its lowest since Sept. 24.
BP slipped 9.5p, or 1.8%, to 529p while Vodafone, Europe's largest wireless company, shed 2p, or 2.3% to 87p and AstraZeneca dropped 87p, or 3.2%, to £25.85 after Europe's second-biggest pharmaceutical firm said it failed to win US approval for a new use of one of its best selling pills.
The dollar today fell beyond $1.50 per British pound too for the first time since January, 2001. It recently traded at $1.5015 and Budgens gained as much as 7.9% to 133.75p after Musgrave Group, an Irish grocery chain, agreed to buy the firm.
United Business Media Plc also advanced 2.7% to 452p as the publisher of the computer magazine Information Week said the amount of ads sold at the CMP Media division fell less than the market, which declined 35.7% in the month compared with a year earlier.
US also fell yesterday, led by General Motors, dragging the Dow Jones Industrial Average to its lowest in almost eight months, also on that concern consumer spending will slow, particularly on purchase of cars and trucks, and car manufacturers will be forced to cut prices.
The Dow slid 129.80 points, or 1.4%, to 9431.77 while the Standard & Poor's 500 Index fell 13.70points, or 1.3%, to 1006.29 and the Nasdaq Composite Index lost 32.08 points, or 2.1%, to 1464.75.
Japanese stocks also ended the week as one of their worst in 15 months, led by Sony and other exporters, after the yen rallied to a three-week high against the dollar.
The Nikkei slumped 2.4% to 10,354.35 points, rounding off a 5.2%, hurt mainly by Toyota Motor and comments from the US market on car sales.
Computer-related stocks in Singapore and South Korea fell, and Hong Kong's Hang Seng Index fell to a 3 ½ month low on the back on concern for consumer spending.
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