Big named UK stocks are rallying the FTSE this morning after the devastating slide to a nine-month l...
Big named UK stocks are rallying the FTSE this morning after the devastating slide to a nine-month low yesterday.
Vodafone Group, GlaxoSmithKline and BP again all led the advances at this morning's open as the FTSE 100 added 1% to 4574 points, pulling back from the 2.2% lost in the panic over Worlcom.
Vodafone rose 3p, or 3.5%, to 89.5p, having fallen 4.7% yesterday. while Glaxo jumped 25p, or 1.9%, to £13.78, paring yesterday's loss of 1.4% and BP, gained 3.5p to 538p after it lost 2% yesterday.
Royal Bank of Scotland Group also climbed 32p, or 1.8%, to £18.40 after the UK's second-largest bank by assets said credit quality ``remains strong'' in 2002.
Asian stocks recovered well too by close of play as concerns about slowing economic growth in the US seemed to ease.
The Nikkei 225 stock average rallied 2.1% as some investors said yesterday's drop to a four-month low was excessive. NEC Corp and Hitachi saw the best gains from this as both firms are forecasting profits this year.
Indexes in Hong Kong, South Korea, Singapore and Australia, which yesterday fell to their lowest in more than six months, also recovered some of their losses after some investors said WorldCom's accounting problems won't have an impact on Asian companies' earnings.
Hong Kong's Hang Seng Index gained 1.3%, led by Cheung Kong (Holdings), and Korea's Kospi index added 1.7%, thanks to strong trading in Samsung Electronics.
US stocks fared slightly better by the end of trading than might have been expected, as WorldCom shattered US investor confidence.
The Nasdaq Composite index rose 5.34 points, or 0.4%, to 1429.33, rallying from its lowest level since the Sept. 11 attacks, thanks largely to Microsoft. It had earlier fallen to 1375.53 points, its lowest level since October 1998.
The Dow Jones Industrial Average and Standard & Poor's 500 Index erased almost all of their losses, which exceeded 2%. The S&P 500 fell 2.61 points, or 0.3%, to 973.53 while the Dow shed 6.71 points, or 0.1%, to 9120.11.
Lenders such as Citigroup had the biggest declines amid concern WorldCom will fail to pay $30 billion in debt and WorldCom's largest shareholder, Alliance Capital Management, also slumped.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till