Market overview: FTSE 100 closes slightly off day's lows, but just barely
Thu 22 Sep 2011
LONDON (SHARECAST) - 1630:Close The London equity benchmark has finished the day sharply lower, barely off the day's lows and very close to the 52 week low, at 5,007, with Mining and Industrial metals&mining companies leading the way on the back of weak economic data worldwide and another session of outsized falls on Wall Street. In fact, even as we speak the main New York equity benchmarks are plumbing new lows. Of interest, on the other side of the channel, the chief executive officer of PIMCO has today warned of the risks for the world economy posed by weakness in French banks.In other asset classes, little change in Eur/gbp, although Eur/usd has fallen towards 1.33. Brent front month futures are now down over 4% and, curiously, precious metals are off considerable on the back of dollar strength. Lastly, and worth noting, Bank of England monetary policy committee member Adam Posen's inetrview in The Wall Street Journal arguing in favour of additional easing measures. FTSE 100 is down 247 to 5,041.
1523: Basic resource stocks are still leading the falls on the London benchmark, with the exception of Burberrys. According to a Reuters poll UK house prices have yet to fall by another 4% before stabilizing.Stateside equities are trying to bounce back but not by much at the moment, with better than expected economic indicators having been pushed aside. The VIX volatility index is up by 10% at the moment. FTSE 100 is now down 248 to 5,040.
1350: Traders will be hoping US markets offer some respite as the FTSE 100 remains under severe pressure. Miners Vedanta, Xstrata and Kazakhmys are all more than 10% lower. Fashion group Burberry gives up recent gains and is down nearly 10%. FTSE 100 down 246 at 5,042.
1210: The FTSE 100 has continued diving and now looks in danger of dipping below the 5,000 point mark. Miners Xstrata and Kazakhmys are now posting double-digit percentage losses. FTSE 100 down 242 at 5,045.
1120: Miners dominate the fallers in a plummeting FTSE 100. Life insurer Prudential is also among the fallers, after a fall US insurers last night, amid fears that the Federal Reserve's "Operation Twist" could threaten their earnings. FTSE 100 down 215 at 5,073.
0954: The London benchmark is taking a very big hit, and at the day's nadir, purportedly following yesterday's decision by the US Federal Reserve and despite the announcement, last night, of new austerity measures in Greece. Most market commentary, it seems, believes the market wanted more aggresive action from the Fed (a very few say the opposite). The Eurozone service sector PMI has come in well below forecasts, signalling a contraction for the first time since August 2009. HSBC's 'flash' Chinese manufacturing sector PMI also failed to deliver the positive surprise speculated on by some yesterday. The Italian government will shortly revise its GDP growth forecasts for 2011, 2012 and 2013. Back in Great Britain, Adam Posen (BoE) argues today in the WSJ for a 'rougly coordinated' easing by monetary authorities worldwide. FTSE 100 is down 193 to 5,096.
0820: Stocks have dived in early dealings after some nervy comments on the economy from the US Federal Reserve last night. Mining stocks dominate the fallers, with Kazakh copper specialist Kazakhmys at the bottom of the pile. Turning to the risers in the FTSE 100, there are none, though Lloyds and RBS are flat, unlike fellow bank Barclays, which is the only non-mining stock in the bottom 10. FTSE 100 down 141 at 5,147.