Corporate profit warnings on the other side of the Atlantic and concerns about the state of the glob...
Corporate profit warnings on the other side of the Atlantic and concerns about the state of the global economy, in particular the current spat between China and the US over the P3 spy plane collision, continue to weigh heavily on the markets.
The FTSE 100 ended the day down 156 or 2.8% at 5463 on thin volumes. Tech heavyweights ARM holdings, Marconi, Logica and CMG led stocks lower.
ARM fell 22p or 6.9% to 298. Marconi, the UK's biggest telephone equipment maker, fell 33p(9.7%) to 309 and CMG gave up 92.5 to finish at 477, a loss of 16%. Sage the supplier of accounting software fell to 227 losing 6.8%. Logica, Europe's largest provider of software for mobile phones, was also down sharply at 878 having lost 22p or 9.5%. Misys, the UK's largest provider of software to the financial industry, was off 6% at 437, a loss of 31p.
More bad news for the markets came in the shape of economic data, released today, showing the consumer confidence index for Europe coming in below expectations, adding to the worries of those looking to Europe to pick up the growth baton from the US.
In the US the Dow Jones had fallen over 195 points (2%) by the time London closed and the tech-heavy Nasdaq was down 89 points or 5% following a raft of profit warnings overnight including those from software companies Ariba and Inktomi.
Inktomi is down 2.38, or 38%, to 3.82 after indicating it will post a fiscal second quarter loss of 23 cents to 25 cents a share, much wider than the four cents a share loss analysts were expecting.
Ariba is unchanged at 5.31 after warning second-quarter revenue would be half of expectations and its bottom line would swing to an unexpected loss. Agile Software has lost 55 cents to 9.70 after it and Ariba agreed to end their merger.
Analysts don't look for much from Ariba for a while. "We do not expect this stock to recover in the near term," Lehman Brothers said in a note to clients.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till