Around the World's Markets
Thursday 24 June 1999
THE MARKET closed lower yesterday, hit by growing fears of a US rate hike and a negative reception to the Lloyds TSB's bid for Scottish Widows. The FTSE 100 ended down 55.9 at 6496.5 in high turnover. The index spent most of the day in negative territory as dealers fretted over the possibility of a US rate rise next week. But news that the Bank of England had voted by a larger-than-expected majority to cut rates two weeks ago helped pare losses. The FTSE 250 closed 18.2 lower to 5,906.9, while the Small Cap finished 1.1 up at 2653.1.
STOCKS OPENED the day mixed as market sentiment was dominated by concern over a possible rise in US interest rates.
The Dow Jones fell 65.85 points to 10,655.78 by 11.20am, while the Nasdaq held firm. The market remained constrained ahead of next week's meeting of the Federal Reserve's interest-rate setting committee, when rates are expected to rise by a quarter point. Traders said they still anticipated good news on corporate earnings given the relative lack of profit warnings in recent weeks.
EXPORTING companies, which have gained from the weakness of the yen, suffered profit-taking. The Nikkei closed down 190.87 points, or 1.07 per cent, at 17,586.75.
Sentiment was hit by the overnight fall in New York stocks, but the fall was checked by bargain-hunting for cheap stocks. Big exporters fell, including Sony, down 2.11 per cent at 13,020, and Fujitsu, off 2.72 per cent at 2,325. The market was underpinned by the Bank of Japan's commitment to a stable exchange rate around the 122 yen level - favourable for exporters.
SHARES CAME OFF as bears were encouraged by Wall Street's poor performance overnight. The Hang Seng closed down 28.84 points, or 0.21 per cent, at 13,976.04.
Traders said the New York fall had put an end to the recent surge in share prices. Stocks had risen by 4 per cent in the two preceding trading days. Raymong Chong, head of research at Dwo Heng Securities, said retail investors were only interested in China plays as the market awaited news of next week's meeting of the US Federal Open Market Committee.
THE XETRA DAX index fell 1 per cent to 5,399.11, affected by sliding prices on Wall Street. German shares were also affected by falling car and banking stocks.
The car sector was led down by concern over the scale of BMW's bigger- than-expected investment to save Rover, and rumours that Volkswagen was interested in taking over the Swedish truck maker Scania. Dresdner Bank led the banks down, falling 3.19 per cent to 36.40 euros on concern about its investment portfolio being hit by falling bund futures.
- 1 I was a Woman Against Feminism too
- 2 Students offered grants if they tweet pro-Israeli propaganda
- 3 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
- 4 John Barrowman praised for Commonwealth Games opening ceremony gay kiss
Peaches Geldof cause of death: Socialite had taken fatal dose of heroin after years of addiction, inquest concludes
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Peaches Geldof: Her final day – and her fatal decision
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...