Not content with upsetting the markets on Friday, Vodafone has pushed the UK's main index down furth...
Not content with upsetting the markets on Friday, Vodafone has pushed the UK's main index down further this morning on the back of negative news last Friday, the global markets reflect fears that the economic slowdown may not be as healthy as we might have expected.
The FTSE 100 index fell another 3.4 points or 0.1% to 5383.7 as the market continued to respond to Vodafone's reduced spending on new mobile phones. ARM stocks climbed 17p or 8.5% to 218p, having delivered some good news that its second-quarter profits rose 23%.
The news is not so good in the US either as stocks continued to fall. On Friday, tech stocks drove prices down again after Microsoft announced it expected profits to be less than its initial forecast this quarter and Gateway cut its earning estimate for the rest of the year.
Semiconductor firm PMC-Sierra pushed the Nasdaq and the Dow Jones further by projecting lower third-quarter sales and widened losses.
Analysts and investment firms are getting quite frustrated at the lack of positive news in the US, which many had hoped was just a small blip on the radar. Analysts now say a strong rally could be several months away as 110 companies have now reduced forecasts in the second quarter.
The Nasdaq closed down 17.22 points or 0.8% to 2029.37 points while the Dow Jones fell 33.35% or 0.3% to 10,576.65.
Elsewhere in the far-East, things are looking even worse. Japan's Nikkei 225 has closed at a 16-year low after new Prime Minister Junichiro Koizumi told world leaders at the G8 summit he will not delay plans to limit spending, even if it means the economy will shrink.
As you might expect, the market reacted badly with the banks suffering the worst losses. The Nikkei fell 298.76 points of 2.5% to 11,609.63, its lowest close since January 1985.
Market analysts say Koizumi has to fix the economy first before attempt to enforce a tighter fiscal policy on Japan.
The lesser-known Indonesia Jakarta Composite Index gained 15.95 points or 3.5% to476.912 points today as lawyers sought to replace the country's President Wahid with Vice President Soekarnoputri.
Hong Kong's Hang Seng index fell115.88 points or 0.9% to 12,185.8 points after Cyberworks cancelled sale a bond.
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