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 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
General Election 2015: David Cameron catching up in polls – but he badly needs a clear lead
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
South Africa xenophobic attacks: Shops looted and violence on streets of Johannesburg as foreigners are forced to hide in police stations
18th century sex toy found in 'toilet of sword fighting school' in Poland
'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...