FTSE slumps further over US concerns

Mon, 8th Apr 2013

The leading share index in the UK nosedived further during the final session of the week as concerns over the US economy led to a bout of profit-taking. By the close of trade, the FTSe 100 was down by 1.49 per cent to end the week on 6249.

News that non-farm payrolls rose by a meagre 88,000 last month, against a predicted 190,000, led to renewed concerns that the US economy is not making the headway that many had hoped. Despite recent positive signs, this week has seen several more worrying indicators, such as the largest hike in unemployment figures since November. This unexpectedly low rise in the number of new jobs, the fewest seen in nine months, fuelled speculation that there is a long road still ahead before recovery is truly in sight.

In other market news, the travel and leisure industry also took a hit in early trade as news of a fresh bird flu virus emerging in China hit sentiment in the sector.

This reported outbreak sent shares in the travel and airline industry plunging with concerns that demand for flight and holidays may be subdued due to fears over the avian virus. international Consolidated Airlines Group was the biggest faller on the leaderboard, down by 6.90 per cent, swiftly followed by easyJet and TUI Travel, lower by 6.38 and 4.66 per cent respectively. Intercontinental Hotels Group was also amongst the bottom 10 performers of the day, shedding 3.63 per cent.

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