A late Alliance & Leicester-led rally for the FTSE 100 saved the index from a more significant fall this afternoon, finally closing down 73.30 points (1.23%) to 5893.60.
Homebuilders were pounded today after Dresdner Kleinwort downgraded Taylor Wimpey and Persimmon to a ‘sell’.
Taylor Wimpey dropped 7.72% to 166.20, while Persimmon lost 4.66% to 705.50
Alliance & Leicester was over 10% at one stage but rallied to close ‘just’ 6.82 % lower, to 492.
Rexam might have copped a full-year profit hit, but forecasts it will bounce back in 2008 led the consumer packaging company to climb 4.8% to 442.25.
Kazakhmys jumped 2.76% to 1488 on high copper prices – while Barclays closed 2.73% higher to 490.
In New York, higher than anticipated US inflation figures has smacked Wall Street early, with the Dow Jones currently 73.19 points lower (0.59%) to 12264.03.
Communications conglomerate AT&T is in sharp decline on a Credit Suisse downgrade to ‘neutral’ – 6.58% lower to 33.53. Verizon is falling in sympathy, down 4.64% to 33.70 so far.
Better news for computer giant Hewlett Packard after strong Q1 results, it is soaring 7.26% ahead to 47.14.
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