Vodafone, the largest company on the FTSE 100 index by volume, has suffered its biggest loss in seven months along with banking stocks expecting to see profits hit by new accounting rules.
The FTSE 100 struggled to make any headway on Tuesday as profit potential was not good for most sectors, and eventually closed down 33.7 points or 0.7% to 4468.5 while the FTSE 250 index ended flat at 6163 and the FTSE All-Share index dropped 14 points to 2224.
Earlier in the day, Vodafone fell to its lowest level since November – having clawed its way back from less than £1 in value – as traders and fund managers are worried the mobile operator may not do as well in future trading under increasing competition. The mobile giant eventually closed the day down 2.75p or 2.2% to 122.75p as four times as many shares changed hands across the main index as a normal day.
Banking stocks were the worst performers in early trading this morning, after a Merrill Lynch briefing note suggested profits at European banks would be hit by new accounting rules.Activity didn’t particularly improve by close of business in London as Royal Bank of Scotland suffered the largest loss in that sector.
Royal Bank of Scotland, Barclays Plc and Lloyds TSB Group all closed down 1.3%, 1% and 0.6% respectively as RBS ended the day at £16.34, Barclays closed down 5p at 483.25p and Lloyds TSB fell to 433.25p.
United Business Media was one of the few firms which managed to make gains on the FTSE as it closed up 17p or 3.5% to 503p on the back of increased advertising for its US technology publications.
In the US, all three main indices are also down as a general negativity has hit the markets.The Nasdaq Composite index has sustained the losses best and is currently almost flat at around 1,974 while the Dow Jones index is 0.38% lower to 10,332 and the S&P 500 index is down 0.26% to 1,127.IFAonline
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