Flight from risk triggers broad sell off, FTSE down 2.1%

Renewed fears over growth prospects for the global economy and concerns about European national debt sent investors scurrying for safety, triggering a broad sell-off on the FTSE 100 index. Banks and commodities were worst hit; by 12:35 BST the index was down 111.85 points to 4,956.88.

Chris Bradshaw
shareprices.com - Tuesday, June 29, 2010

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BT Group

Shares on Britain's top index moved down with the exception of BT Group, up 0.2 per cent. Mining stocks are receiving a battering, with major mining stocks losing over 4 per cent in value so far. Xstrata is the worst performer today, down 4.9 per cent. Outside mining stocks Barclays is losing the most, down 3.85 per cent; HSBC Holdings is down 3.24 %.

Matters are looked better for mid-cap stocks, a number of shares listed on the FTSE 250 index are moving up, even though the FTSE 250 index is down 1.81 per cent as of 12:45 BST. Chloride Group is the star stock of the day, up 11.68 per cent so far.

Chloride, the power supplies specialist, received an increased bid from the US group Emerson. The US company upped its price offer to 375p, Chloride is currently trading at 389.10p. This offer shoots past the agreed price of 325p offered by ABB, the Swiss-Swedish electrical engineering company. Emerson's increased offer continues a bidding war started in late April when Emerson's offer of 275p per share was trumped by ABB.

Japan published lower industrial output figures for May 2010, down 0.1 per cent, which suggests that the rebound in exports to Asian markets may be levelling off. In addition investors got jittery as the European Central Bank refused to renew its €442bn funding program. Banks, already coping with weak lending markets, will now have to pay the money back this week.

 

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