FTSE 100 breaches 4,300 mark
Wednesday 17th June 2009, 5:13PM BST.
The FTSE 100 fell 1.21 per cent to 4,276.08, taking the index below 4,300 for the first time in a month.
The mining sector continued to struggle, with Xstrata down by 10.47 per cent, followed by an 8.15 per cent fall from Lonmin and a 7.96 per cent fall in Rio Tinto.
Although job loss data released today came in at better-than-expected levels, and minutes from the Bank of England (BoE) suggested the interest rate will remain stable for some time, investors are still cautious.
“Despite the release of minutes confirming that the BoE unanimously reached the decision to hold interest rates at 0.5 per cent, there is a sense of concern amongst investors that a reduction in economic stimulus may dent growth in the short- to medium-term,” said Anthony Grech, market strategist for IG Index.
“And this in turn could see reduced equity prices in coming weeks. With the key psychological support level of 4300 breached today, traders will now be bracing themselves for a further slide downward.”
Supporting the blue-chip index, Vodafone Group was up by 3.71 per cent, while BT Group rose by 3.02 per cent.
In the US, trading was mixed, with the Dow Jones up by 0.06 per cent by mid-morning, while the S&P 500 fell by 0.25 per cent.
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