FTSE near 4,900 on broad sell-off

A lack of company news combined with macroeconomic worries pushed the FTSE 100 to close near the 4,900 mark. Today's sell-off did not spare a single stock and the FTSE 100 closed down by 157.46 points or 3.10 per cent, finishing the day at 4,914.22.

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

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Rio Tinto

On Thursday Eurozone banks will be forced to repay the €442bn in extraordinary loans from the European Central Bank. Banks were not pleased by the decision not to renew the loans which poses liquidity problems for Eurozone banks and in return reduces their capability to lend; a drag on economic growth. In addition fears about Eurozone sovereign debt did not help investor sentiment.

Neither did a leading indicator of the Chinese economy help. The possibility of soft growth in the Chinese economy was cited by traders as having an impact. There are also very weak consumer confidence figures in the United States which does not bode well for non-farm payrolls, the main US employment indicator.

As before mining stocks swapped their leading role for a losing role. Of the top 10 losers today mining stocks counted for five. Rio Tinto lost 6.39 per cent to 3,048.00p, Petrofac Ltd. 5.92 per cent, Lonmin 5.89 per cent, Antofaghasta 5.84 per cent and BHP Billiton lost 5.82 per cent. Xstrata, Anglo American, Eurasian Natural Resources, Tullow Oil, Cairn Energy, Vedanta resources, Kazakhmys and Fresnillo all moved down 5 per cent or more. Also at the bottom of the list was Barclays, losing 6.41 to close at 267.35p and British Airways down 5.92 per cent to 197.00p.

 

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