THE London market slumped more than 2 per cent for the third session in a row as more miserable economic data sent shares diving on both sides of the Atlantic – cementing the sharpest FTSE weekly drop in more than six years.
LONDON FTSE 100 CLOSE 5,240.7 -121.4The FTSE plunged 121.4 points, or 2.3 per cent, to 5,240.7, repeating performances seen on Wednesday and Thursday amid sustained fears for the world's major economies.
It took the index'
s plunge over the past three days to nearly 7 per cent, making it the worst weekly performance for more than six years. The FTSE was also back in bear market territory last visited in July.
Tim Whitehead, head of portfolio services at Redmayne- Bentley, said: "It's surprising how things can change in a few days. Earlier in the week there was talk of the inflation threat receding with crude oil prices falling. Markets were looking a little bit rosy. We were thinking there might be a rally towards the end of the year."
There was no relief in yesterday's trading after figures showed the unemployment rate in the US rose to its highest level in nearly five years. Wall Street's Dow Jones industrial average rose in late trading after early falls while markets in Germany and France dropped more than 2 per cent.
In London, miners tracking lower metals prices and financial stocks hit by the economic misery weighed heavily on trading. Barclays shed 12p to 317.25p and Royal Bank of Scotland fell 8p to 219.75p. HBOS was also 2 per cent down, or 7p, to 275.5p.
Other financial-sector firms hit included life company Friends Provident, down 4.4p to 96.4p, and Norwich Union owner Aviva, which shed 20.25p to 494.75p.
Among the big miners on weaker ground was Ferrexpo, which has been a major casualty for the past two days. Shares were down 14p to 184p. Eurasian Natural Resources lost nearly 8 per cent, or 66.5p, at 805.5p and Kazakhmys was off 86.5p at 975.5p.
Broadcaster ITV, which has been plagued by the gloomy advertising outlook amid the worsening economy, saw shares fall 1.3p to 42.2p. Supermarket chain Sainsbury's was also a big faller – down 11.5p at 336p – as takeover speculation surrounding the group began to fade.
Among the few risers, Flora-to-Persil group Unilever continued its strong run after Thursday's well-received appointment of Nestlé's Paul Polman as chief executive. Shares briefly dipped into the red before recovering to stand 10p higher at 1591p.
But insurer RSA was the leading performer, up 3 per cent, or 4.5p, at 162.8p as market rumours persisted of a bid from German giant Allianz.
The full article contains 476 words and appears in The Scotsman newspaper.
