The Footsie hasn't had an easy ride today with stocks falling again on the back of Federal Reserv...
The Footsie hasn't had an easy ride today with stocks falling again on the back of Federal Reserve suggestions that the world's largest economy is slowing.
Sage Group Plc, the UK's number one maker of accounting software, fell 12.25 to 255.75, after analysts at Lehman Brothers and Morgan Stanley Dean Witter pared their earnings per share estimates. Lehman reduced their 2001 earnings estimate to 6.58p from 6.87p previously and to 7.95p from 8.26p for 2002.
Logica Plc, Europe's largest provider of software for mobile phone companies, also declined 46p to 865.
Reports today showed UK unemployment fell to a 26-year low of 3.2% and the Bank of England said the UK economy will grow more slowly than expected for the rest of the year and that inflation rates will rise at a slower than expected pace.
In the US, concern over slowing profits has overshadowed the Federal Reserve's fifth interest rate reduction of the year yesterday.
Communication-chip shares slid after Goldman, Sachs & Co. said stocks such as Applied Micro Circuits Corp and PMC-Sierra Inc are overvalued after their recent rally and likely to drop.
Applied Micro Circuits fell $1.33 to $20.75, PMC-Sierra lost $2.52 to $33.04 and Vitesse Semiconductor Corp. declined $1.47 to $27.99.
Asian stocks also fell, led by TDK Corp. and other electronics exporters, after the Federal Reserve announcement. That stoked concerns that demand for Asian goods may not recover until 2002.
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