FTSE 100 down as Euro recession bites

Friday 15th May 2009

The FTSE 100 was down at the end of the week as data came in that the European recession has worsened.

At close of play, the index was down 0.33 per cent to 4,348.11.

A mid-morning slump was only held back as US markets opened up and added some optimism for traders.

However, early morning optimism in New York was dashed by lunch with the Dow down 0.51 per cent at 12:19 EDT (17:19 BST) to 8,288.71.

David Jones, chief market strategist at IG Index, said: "Banks had earlier given a boost to the UK markets, as Barclays’ reported plans to sell its Global Investors arm caused a leap in its share price which was mirrored by other banking groups.

"However, the gloom continues as oil prices slumped back towards the $58 mark and news of deepening recession in Europe dashed hopes of a rise in energy demand.

"Meanwhile on Wall Street the day began with a round of selling led by poor results in the retail sector."

He added: "With the lack of any substantial corporate news to chew on this morning, and the afternoon US CPI report not shaking the bulls awake, we are back to asking whether this calm is likely to remain into next week, or if the FTSE will hit some turbulence."

In London, the biggest gains of the day went to Barclays – up 5.83 per cent to 267.75p

Vedanta Resources was up 5.11 per cent, while Cobham gained 4.15 per cent.

BT Group continued its falls down 3.85 per cent to 85p, while Standard Life fell 3.64 per cent and British Airways fell 3.38 per cent.

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