Global markets braced for another week of turmoil on euro zone fears

Fears that the euro zone economy will plunge back into recession have diverted investors away from riskier stocks

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The Independent Online

The retreat in global markets showed no signs of ending today despite a boost to mining stocks following better-than-expected trade figures in China.

The exports boost in August eased fears of a slowdown in the world's second largest economy and lifted demand prospects for commodity-driven stocks.

Progress in the mining sector left the FTSE 100 Index 34.6 points lower at 6305.7, compared with initial indications for a fall of around 65 points.

Fears that the euro zone economy will plunge back into recession have diverted investors away from riskier stocks and caused a slump for the Dax in Frankfurt and Cac40 in Paris, leaving both lower by around 0.5 per cent today.

 

In London, TUI Travel was the biggest faller with a drop of 2 per cent or 7.6p to 336.2p while InterContinental Hotels was 47p cheaper at 2148p.

Apple chip designer Arm Holdings, which is based in Cambridge, was down 2 per cent or 17.25p to 825.25p after big losses for the tech-laden Nasdaq index on Wall Street on Friday.

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Chocolate maker Thorntons came under pressure after it said sales through commercial channels fell 12.8 per cent to £20.8 million in the 14 weeks to 4 October.

It blamed the timing of orders from supermarket customers but with retail stores also quieter the company's shares slid 6% or 5.9p to 93.1p.

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