Doom and gloom in tech stocks continued to drag the Footsie down in trading today. The index clos...
Doom and gloom in tech stocks continued to drag the Footsie down in trading today.
The index closed at 5901.5, shedding 21 points and erasing an earlier climb of as much as 37.2 points.
Fund managers said it may be this time next year before any kind of improvement is seen in technology stocks. Today's fall was led by CMG, an Anglo-Dutch computer-services company. CMG dropped 28p to 380, while Marconi, the UK's number one phone-equipment maker, slid 13p to 362.
In contrast, the Bank of England said the threat of a slowing in US growth is receding, UK consumers are spending more, house prices are rising and tourism is recovering from foot and mouth.
As a result the Bank left its benchmark interest rate unchanged at 5.25% today after cutting it three times in the past four months, each time citing the threat of slowing US economic growth.
Analysts say it is likely the bank's previous rate reduction may be the last before borrowing costs start going up.
In response a number of the major banks improved today. HSBC, Europe's largest bank by market value, rose 10p, to 900. Royal Bank of Scotland advanced 48p to 1,745 and Barclays added 43p to 2,213.
Yesterday's disaster story, Railtrack, extended its slide, falling 14.5p to close at 350.
US stocks fell for the first time in five days, led by Exxon Mobil Corp, as crude oil prices declined on a report showing rising US oil and gasoline inventories.
Exxon Mobil dropped $2.10 to $89.45. Chevron Corp. lost $1.50 to $96.20 and Sunoco declined $1.28 to $39.83.
The Dow Jones Industrial Average fell 76.06 to 11,099.78. The Standard and Poor's dropped 12.92 to 1270.65 and the Nasdaq lost 19.41 to 2214.25.
J.P.Morgan Chase and Co. dropped after it said second-quarter profit will disappoint investors as telecommunications-industry bankruptcies reduce the value of the company's investments. J.P.Morgan Chas fell $1.45 to $47.05.
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