Market: IMF’s tales of gloom depress markets
MARKETS continued their slide yesterday as the International Monetary Fund turned its attention to the euro crisis.
Fresh from downgrading its growth forecasts for most of the world, the IMF increased its estimate of the assets that European banks must sell to stay afloat, while ratings agency Fitch piled in with a warning of further credit downgrades if the economic situation in the eurozone worsens.
Angus Campbell, head of market analysis at Capital Spreads, said: “Equity markets have done nothing but grind gradually lower in the past few days as the economic outlook both domestically and outside of the UK has deteriorated. Investors are struggling to find any reasons to increase their exposure to equities when there are people left right and centre warning them of stormy waters ahead.”
The FTSE 100 Index was down 33.5 points or 0.6 per cent at 5,776.7.
Despite the IMF’s stern words, Britain’s banks were among the biggest blue-chip risers after it was confirmed that capital requirements had been eased in order to boost lending. Lloyds was 4 per cent higher, up 1.5p at 38.5p, and Royal Bank of Scotland cheered 5.4p to 262.7p. Barclays, which unveiled a deal on Tuesday to buy the UK savings and mortgage business of ING Direct, was up 0.5p at 222p.
Outside the top flight, chocolate retailer Thorntons set a downbeat tone ahead of the festive season as it reported a 1.7 per cent drop in like-for-like sales in the 14 weeks to 6 October.
The outlook is also far from certain, it warned. Chief executive Jonathan Hart said consumer spending and the wider economy remain weak and difficult to predict. The gloomy message was expected, however, and the stock rose 0.8p to 31.3p.
NEW YORK: The S&P 500 fell for a fourth session last night, weighed down by disappointing news from
Chevron and Alcoa as earnings season got under way.
The Dow Jones industrial average slid 128.56 points, or 0.95 per cent, to end the day at 13,344.97 while the broader Standard & Poor’s 500 Index slid 8.91 points, or 0.62 per cent, to finish at 1,432.57. The Nasdaq Composite Index lost 13.24 points, or 0.43 per cent, to close at 3,051.78.
Search for a job
Search for a car
Search for a house
Weather for Edinburgh
Tuesday 18 June 2013
Temperature: 10 C to 21 C
Wind Speed: 10 mph
Wind direction: South
Temperature: 10 C to 19 C
Wind Speed: 16 mph
Wind direction: West