UK financials dented the stock market once again, and unfavourable reactions to the US's bailout plan caused further problems for Britain's biggest companies.
Lloyds Banking Group dropped 17.94% to 82.8p over fears it would follow RBS in seeking further Government support, while private equity managers 3i Group fell further, down 16.32%, after reporting major losses on some investments.
The insurance sector also fared badly, with Skandia owner Old Mutual down 12.23% while Legal & General dropped 9.96% despite a 3% rise in sales in 2008.
Morrison Supermarkets performed well, with shares climbing 13.5%, while rival Sainsbury added 0.61%.
In the US, the Dow Jones fell 135.64 points (1.62%) shortly to 8,239.81 after markets opened.
Bank of America shares dropped 7.58%, Citigroup fell 5.71% and JP Morgan Chase dropped 5.46% in early trade. All three made large gains yesterday.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]Investment Week
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation