Sun, 26th May 2019
The top share index in the UK was heading downwards for the third day in a row as fears over the global economy were compounded by the events at the Boston Marathon. By the close of trade, the FTSE 100 was lower by 0.62 per cent, reaching 6304.
The tragic events in Boston weighed heavily on the market on Tuesday with investors cautious over the 'act of terror' which as yet has not been claimed by any group. With global security hanging in the balance and the ramifications for the impending London Marathon also being factored in, markets were more reserved.
However, it wasn't just the horror of the explosions which left investors less than enthusiastic on Tuesday. Recent figures from both the US and China have dented optimism over the strength of the global recovery and adding to the woes on Tuesday was the latest economic data from Germany. The ZEW economic sentiment indicator took a sharp plunge last month, tumbling to 36.3 from 48.5, against a forecast of 41, highlighting that consumers are far less confident than before.
In the UK, the CPI remained unchanged in March, more or less as predicted.
Broker ratings and comments took a particular toll on the FTSE 100 on Tuesday with several heavyweights pushed lower as a result.
ARM Holdings was one of the worst affected, only just off the bottom on the leader board, with a loss of 3.18 per cent after Societe Generale once again maintained a bearish stance on the stock. Also being pushed into the red were AB Foods and GKN, affected by Credit Suisse and Barclays Capital retrospectively.