There's been another big fall on the FTSE this morning, down to a 9 ½-month low, thanks largely to f...
There's been another big fall on the FTSE this morning, down to a 9 ½-month low, thanks largely to further losses in the US markets yesterday which dropped to its lowest close since Nov 1997.
GlaxoSmithKline, BP and Vodafone led the retreat, along with JJB Sports which said first-half profits will fall.
The FTSE 100 retreated for a fourth day in a row, dropping 2% to 4323.7 points, its lowest again since September 21.
In the US, the Standard & Poor's 500 Index slid 32.36 points or 3.4% to 920.47, its lowest close since November 13, 1997, while the Dow Jones Industrial Average declined 282.59 points or 3.1% to 8813.50 and the Nasdaq Composite Index fell 35.11 points or 2.5% to 1346.01.
BP dropped 9.5p or 1.8% to 527.5p, GlaxoSmithKline shed 43p, or 3.4% to 1,227p and Vodafone slid 2.25p, or 2.6% to 86p.
Asian stocks suffered on the back of US losses, led by Sony, Hyundai Motor and other exporters, on concern a plunge in US equities will push the dollar lower, squeezing their overseas sales.
South Korea's Kospi dropped 3.8% while Taiwan's TWSE Index shed 1.1% while Hong Kong's Hang Seng Index slumped 2.4% as telecommunications stocks such as China Mobile (Hong Kong) led the drop, as some investors sold shares of phone companies, a target for U.S. accounting probes. Singapore's Straits Times Index fell 1.7% while the Nikkei 225 stock average dropped 2.5% to 10,485.74.
In the US, revelations that Qwest Communications International is the latest corporate target of U.S. prosecutors hit the market hard and indices fell to their lowest level in almost five years.
The benchmark had its biggest one-day rout since the first day of trading following the Sept. 11 attacks as accounting scandals, terrorist threats and concern about slack profit growth turned investors against stocks.
Qwest's disclosure that it's the subject of a criminal probe undercut investor confidence a day after President George W. Bush sought to shore up faith in stocks with proposals to crack down on corporate abuses. Qwest plunged 83 cents, or 32% to $1.77.
Investors in the world's biggest stock market have lost about $2.3 trillion of wealth in 2002. The S&P 500, down 22% from its peak this year, is headed for its first three-year losing streak since 1939 through 1941. The Nasdaq, loaded with computer and telecommunications stocks that collapsed with the Internet bubble, has dropped 73% from its March 2000 high.
Drugmakers such as Pfizer led declines for a second day as legislative and research setbacks raised concern that their profit growth will falter.
Professional money managers are also reacting to the relentless declines, hording cash. Institutional investors are said to have poured $21.7bn into money funds for the week ended yesterday, even as yields reached record lows.
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