Around the World's Markets:London

LEADING SHARES were resilient, closing higher despite growing fears of a US rate increase. The FTSE 100 rose 60.3 to 6,266.7 helped by positive domestic economic news and a good opening on Wall Street. The revelation that the Bank of England had decided to leave rates unchanged after a close vote fuelled hopes of a near-term cut. Morning gains were boosted by a firm start in the Dow. The smaller indices were lacklustre with the FTSE 250 finishing 13.2 higher at 5719.9 and the Small Cap losing 1.3 to 2555.6. Market Report, page 25


US STOCKS shrugged off the shift of emphasis towards higher interest rates in the Fed's monetary policy and the Dow Jones was slightly up at mid-day, led by activity in a handful of high-profile technology stocks.

Dell Computer was the most actively traded stock, falling $4 3/16 to $39 7/8 after reporting a dip in gross margins, but semi-conductor maker Applied Materials and Internet portal Lycos were in demand. Airline stocks fell sharply on reports of falling seat revenues.


THE NIKKEI 225 index fell a further 250.44 to 16,128.18 - 1.53 per cent - as a result of profit-taking largely blamed on hints from the Federal Open Markets Committee meeting in the United States yesterday that a rise in interest rates is being considered.

Japanese bank stocks came under additional pressure after a report claimed the doubtful loan portfolio of 15 leading banks could be closer to 20 trillion yen compared with 14 trillion under previous calculations. Sumitomo, Fuji and Tokyo-Mitsubishi all fell by more than 3 per cent.


THE CHANGE of emphasis in US monetary policy sent shares in Hong Kong sharply lower, although the Hang Seng closed above its worst at 12,403.14, down 223.96 points or 1.77 per cent.

Dealers said the link between the Hong Kong and US currency means that Hong Kong would be forced to follow a rise of a half per cent or more in US rates.

HSBC closed 3.00 lower at HK$257.00 while Hang Seng Bank fell 4.00 to HK$81.00. Sun Hung Kai Properties, China Resources and Hutchison Whampoa also fell.


SHARES in Preussag, the former steel and engineering group now relaunched as a tourism specialist, led the German markets higher, jumping 6.2 per cent to 48.86 euros after clinching the disposal of plant construction businesses and shipyard in an asset swap with Babcock. MAN continued to gain ground and ThyssenKrupp gained 3.5 per cent to 18.95 euros after recent weakness, Deutsche Telekom forged ahead in sympathy with BT, but banks and motors were mixed. The Xetra Dax index closed 1 per cent higher at 5,213.30.

Start your day with The Independent, sign up for daily news emails
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas