London started the day with further falls, following drops last night in New York and in Asia.
At 9:08AM GM, the FTSE 100 was at 4,027.29 – a fall of 38.20 points or 0.94 per cent – after dropping below 4,000 in early trading.
Much of the attention of traders was taken by falls last night in New York.
The Dow Jones dropped 7.70 per cent to 8,149.09 – with the banks leading the drop.
Citi Group was down 22.20 per cent, Bank of America dropped 20.92 per cent, AIG slipped 17.91 per cent and JP Morgan Chase slid 17.50 per cent.
In Asia overnight, the Nikkei was down 6.35 per cent and the Hang Seng was down 4.98 per cent.
Drops this morning in London followed a 5.19 per cent fall last night.
Tom Hougaard, at City Index, this morning before markets opened predicted a 100 point drop for the FTSE 100
“And so in the end logic prevailed,” he said.
“It is rare that logic prevails in the market, but why should the Thanksgiving shopping spree be anything but disappointing? And the Dow gave its verdict last night, and Asia is giving its verdict right now. It is a sea of red.
“We already lost significantly here in Europe yesterday but we are still being called lower.”
However, he expected the Dow Jones to see a minor recovery.
In London, miners continued to drag the FTSE 100 down.
Rio Tinto was down 6.60 per cent, Anglo American fell 6.00 per cent and BHP Billiton dropped 4.90 per cent.
London Stock Exchange Group fell 6.78 per cent and Schroders lost 5.06 per cent.
Biggest gains went to Tesco – despite a sales slowdown – rising 7.12 per cent to 308.50p.
Royal Bank of Scotland rose 6.02 per cent and Thomas Cook gained 4.62 per cent on good results.
3 Comments
Yesterday, Monday 1st December, the £ Sterling fell to its lowest rate against the US Dollar since before the ERM crash, similarly the £ Sterling against the Euro was at it,s lowest ever. The FTSE was also down dramatically and yet I haven’t heard anything from George Osbourne just lately so Brown and his Labour gang can’t blame Osbourne for it as they normally do, so, who do they blame now. There doesn’t seem anyone in the running so I suppose they will just have to put their hands up, accept that they are to blame for the whole darned mess and see about getting us out of it. Or, I suppose they could always blame America for the fall against the Euro and the EU for the fall against the dollar - that would be on a par with their usual economic acumen.
Report abuse
stuart the whole world is going down on a none stop fall so how call 1or2 people take the blame.
stand back and look at the bigger picture.
we got greedy (meaning house prices and spend on the card). we are all to blame.
You want the world leaders to do what???
This will not going away over night with a
plaster, it may take 3-5 years.
Report abuse
neil-aus, you possibly don’t see the British papers in Ozz. If you had have done, you would have seen that The Labour Government blamed George Osbourne (Tory) for any falls in the currency after he told Brown and Darling that what they were doing was causing the £ Sterling to lose against the dollae and Euro.
As for 3 - 5 years, who are you kidding, what this lot have done over here is going to take a lifetime to get over it, they themselves admit that they can’t start paying back our debts until 2015, which is 7 years away.
Furthermore, there are economic problems over here caused directly by this government in power, much as they would like us to believe them, not all of us accept that everyone in the world is in the same boat. Can I suggest that you get up to date on the situation over here and stop trying to put Ozz and ourselves on a par. We may be in some things but certainly not all.
Report abuse