FTSE 100 closes lower
Thursday 2nd October 2008, 5:55PM BST.
The FTSE 100 briefly broke the 5,000 barrier this afternoon before slipping back again to close 1.8 per cent down at 4,870.34.
News the European Central Bank was holding interest rates, despite expectations of a cut, sent stocks lower, as did a weak start on Wall Street.
HBOS continued its rally and closed at 170.10p this afternoon, 14.85 per cent higher, while Lloyds TSB was up 4.8 per cent.
Shares in retailer Marks & Spencer surged 8.09 per cent, despite posting a six per cent fall in sales earlier today, as a cost-cutting plan clearly impressed investors.
Mining stocks were among the losers on the benchmark index, with Vedanta Resources down 11.88 per cent and Tullow Oil shares fell by 10.2 per cent.
Equities in the US also fell sharply in early trading in New York and the Dow Jones had fallen by 2.12 per cent by 12:00 EDT (17:00 BST).
David Jones, chief market strategist for IG Index, said: “With the bail out plan expected to be finally passed – famous last words – on Friday, it’s almost as if investors are reluctantly forced once again to look at the problems of the wider economy.
“Credit markets are still suffering inertia with banks still not trusting each other and with US unemployment numbers due out on Friday hardly expected to lift the gloom, we may not have to wait too long to see the lows from earlier this week visited again.”
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