Big news in the UK markets this morning is the suggestion HBOS is now considering a takeover bid for Abbey group, but markets are marginally down on the prospect of Al Qaeda terrorist attacks.
The FTSE 100 index fell 3.9 points to 4409 within the first hour of trading while the FTSE All-Share index dropped 0.1% to 2,190 and the FTSE 250 index lost 7.9 points to 6015.
Abbey has seen its share price bounce back up 10.5p or 1.9% this morning to 577.5p however, HBOS’ value has dropped 13.5p or 1.9% to 699p after suggesting it would mount a counter-bid to buy Abbey National plc to stop Banco Santander stepping into the UK market.
Other stocks suffering the fall are those companies who could be affected by Al-Qaeda terrorist attacks, after the US government reported more attacks could be imminent.
British Airways is one of those companies to see its share price fall, dropping 6.25p or 2.7% to 224.5p while Carnival, the cruise operator, also lost 13p or 0.5% to £26.77.
Worries about further terrorist attacks in the US affected the Asian stockmarkets today, as the large firms TDK and Samsung saw the worst of the losses.
The Japanese Nikkei 225 index closed down 0.9% to 11,222 as a result of news suggesting Al-Qaeda would next target the New York Stock Exchange and financial institutions.
And in the US on Friday, all three main indices managed to close up a fraction.
The Dow Jones gained 10.4 points or 0.1% to 10,139 while the Nasdaq 6.3 points or 0.33% to 1,887 and the S&P 500 index added 1.29 points or 0.12% to 1,101.IFAonline
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