Investors may be wondering if the Bank of England's Monetary Policy Committee's decision to cut the b...
The MPC yesterday cut interest rates by a quarter per cent to 5.25% immediately sending financial stocks and the Footsie higher. However the benefits of the rate cut would appear short lived as the market closed 67.2 points lower at 5896.8.
With speculation growing that the US Federal Reserve may discontinue its rate cutting policy, which began with the election of George W Bush, the three core US markets fell on opening to push the Footsie lower. The Dow Jones fell 89.65 points to 10,820.79, the Standard & Poor's 500 lost 7.81 to 1247.37 and the tech focused Nasdaq declined 12.02 to 2116.84.
Tech stocks took the biggest hits in London to end with losses having gained in value for most of this week. Marconi fell 22p to 371p, Energis lost 14.75p to 301.75 and Colt Telecom declined 62p to 836p.
British Telecom closed 2p lower at 526p having dropped 78p since last Friday in a week that has seen it announce details of its proposed £5.9bn rights issue to counter losses.
Following gains for US listed retail stocks after retail giant Walmart announced an upturn in revenue gain it was the turn of their UK counterpart to gain. Safeway added 4.5p to 337.5p and Sainsbury rose 5.5p to 406.5p.
Insurance group Prudential climbed 7.5p to 838.5p after scooping a $600 bonus for dropping out from the bidding for Houston based counterpart American General leaving the way clear for American International Group to take control. AG rose 43 cents to $45.05 while AI lost 53 cents to $82.47.
Industrial group Laird fell 12p to 196.5p when it said first half profit will be affected by slowing demand in the US where two thirds of its business is based.
IBM declined $2 to 113.20 when Bear Stearns analyst Andrew Naff said the stock is unlikely to increase in value for the remainder of the year. Computer Associates fell 40 cents to $27.97, Microsoft lost 89 cents to $69.11, I2 Technologies declined 77 cents to $20.36, Intel fell 54 cents to $28.47 and General Electric lost 79 cents to 49.04.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected