London Market: Stocks on a rollercoaster
Sunday 30 August 1998
Stocks are likely to see big rises and falls, "and you don't know where it's going to be at the end of the week", said Tim Gregory, a fund manager at Gartmore Capital Management.
On Wednesday, Thursday and Friday, the benchmark FT-SE 100 stock index suffered its worst three-day slide since 1987, down 7.1 per cent. Over the week as a whole, the index fell 4.16 per cent, ending 119.10 points lower, at 5,249.4.
Stock markets around the world slumped as Russia's sliding currency and debt default spurred concern that the turmoil will spread to other emerging markets, hobbling the outlook for corporate profits worldwide.
"The volatility we are seeing is quite astonishing," Mr Gregory said. "There is definitely some good value being offered by some quality UK equities."
Investors will look to Russia for evidence that the Government is moving to shore up its slumping economy. "We're going to be totally dominated by external forces," Mr Gregory said.
Eyes will be on engineering companies, as Senior Engineering Group, Meggitt and Amec all release first-half earnings on Thursday. The companies are likely to show that manufacturing is suffering from slowing global demand and the strong pound. The pound has gained 2.5 per cent against currencies of its major trading partners in the past eight days.
Bonds are likely to be supported by "the ongoing problems in Russia and the prospect of other emerging markets following suit", said Andrew Snowball, an economist at Julius Baer Investments.
Gilts lost early gains on Friday because "valuations looked a little bit stretched" at record low yields, said John Kelly, an investment director at Barclays Global Investors Funds. Even so, "the underlying safe-haven theme won't change soon".
The benchmark 7.25 per cent, 10-year UK government bond pared gains of as much as 29/32, or 91 pence per 100-pound bond, ending 6/32 higher at 114 3/32. At one point, the yield touched 5.21 percent, its lowest in more than 30 years.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Cheryl Cole officially the 'most dangerous celebrity' on the internet
Ebola virus in the US: What are the symptoms, what is it and is there a cure?
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Benefits 'smart cards' plan revealed by Iain Duncan Smith to stop claimants spending welfare money on alcohol
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...