Foot­sie dips be­low 7,000 as rout goes on

The Scotsman - - Markets - Perry Gour­ley

The FTSE 100 fell back be­low 7,000 points af­ter fail­ing to hold on to early gains in the ses­sion.

The in­dex closed down 11.02 points at 6,995.91 de­spite mov­ing 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.

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 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 Sports Di­rect closed 1.9 per cent higher at 316p af­ter the com­pany an­nounced it had bought the free­hold of the Frasers store in Glas­gow for £95 mil­lion. 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.

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