Early gains wiped out as stocks slide

Western Daily Press (Saturday) - - Business -

THE FTSE 100 failed to hold on to its early gains yes­ter­day, slid­ing back into the red.

The in­dex was down 11.02 points, or 0.16 per cent, at 6,995.91.

Top-flight stocks had moved back into pos­i­tive ter­ri­tory ear­lier in the day as global stock mar­kets ten­ta­tively re­cov­ered from a wide­spread sell-off.

A day ear­lier, the FTSE 100 suf­fered its largest one-day drop since June af­ter fall­ing 1.9 per cent.

Neil Wil­son, of Mar­kets.com, had warned ear­lier on Fri­day that sen­ti­ment was still “frag­ile” and mar­kets could be in for a “dead cat bounce”: a short-lived re­cov­ery af­ter a sub­stan­tial fall.

Euro­pean stocks ex­pe­ri­enced a sim­i­lar re­ver­sal fol­low­ing an ini­tial re­cov­ery. The French Cac was down 0.14 per cent and the Ger­man Dax was down 0.13 per cent.

In­vestors have been head­ing for the exit on con­cerns over ris­ing US bond yields, with Amer­ica’s mas­sive bor­row­ing look­ing vul­ner­a­ble given the costs of ser­vic­ing the debt.

Mar­kets have also been jit­tery over mount­ing trade ten­sions be­tween the US and China, which could hit global de­mand.

“Traders are keen to square up their books ahead of the week­end,” said CMC Mar­kets UK mar­ket an­a­lyst David Mad­den.

“The global eq­uity rout orig­i­nated

11 Points fall on the FTSE 100 in­dex in

Lon­don last night

in the US, and the moves con­tinue to be US driven, and Euro­pean deal­ers are keen to cash in their hold­ings as Wall Street still has sev­eral hours more trad­ing left. “

Shares in Aim-listed Patis­serie Hold­ings are still sus­pended but the com­pany has put for­ward a res­cue plan which will in­volve chair­man Luke John­son stump­ing up loans of as much as £20 mil­lion.

The com­pany also hopes to raise £15 mil­lion by is­su­ing new shares.

Shares in Sports Di­rect were trad­ing 1.58 per cent higher af­ter the com­pany an­nounced it had bought the free­hold of the Frasers store in Glas­gow for £95 mil­lion.

In cur­rency mar­kets, the pound was lower by 0.5 per cent against the US dol­lar at 1.316 and dropped 0.28 per cent ver­sus the euro to 1.380.

Brent crude prices were also lower, down 0.3 per cent at 80.06 US dol­lars (£60.84) per bar­rel.

The big­gest ris­ers on the FTSE 100 were Scot­tish Mort­gage In­vest­ment Trust, up 26.6p to 481p, Bar­ratt De­vel­op­ments up 26p to 513.8p, Fres­nillo up 37.4p to 876.4p, and Ocado Group up 33.8p to 813.2p.

The big­gest fall­ers on the FTSE 100 were Im­pe­rial Brands, down 161.5p to 2,516.5p, Bri­tish Amer­i­can To­bacco down 133p to 3,272p, United Util­i­ties Group down 17p to 687.4p, and Har­g­reaves Lans­down down 44p to 1,806.5p.

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