Alistair Darling’s comments over the weekend on the worsening state of the UK economy did nothing to inspire confidence in equities this morning and the FTSE 100 fell 42.5 points to 5,594.10 by 09:30 BST.
The finance minister told the Guardian on Saturday the UK economy is in its worst shape in 60 years, prompting a fall in retail and service sector stocks.
Pub group Enterprise Inns was down 4.12 per cent to £2.91 per share, while Marks and Spencer fell 2.29 per cent.
The gloomy forecast also hit banking stocks. Barclays was down 1.2 per cent to 348.25p, while HBOS fell 0.32 per cent to 314.75p.
Weaker metals prices also hit mining stocks, with Kazakhmys down 3.33 per cent to £12.49 and BHP Billiton down 2.5 per cent to £16.75.
The mass evacuation of staff from US oil interests in the Mexican Gulf has had an impact on output, sending up prices.
US light crude for October delivery rose $1.54 to $117 a barrel by 08:14 BST.
One Comment
Well done Labour!!
You inherited a golden goose of an economy in 97 and have wasted it on quangos, useless initiatives, and two wars, spin yourselves out of that.
Things can only get better!!
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