The FTSE 100 fell back again yesterday as banks dragged the market down on fears over their exposure to Dubai. The index lost 1.7% to close at 5,223.
RBS, Standard Chartered and Barclays fared worst among financial stocks, down 7.7%, 3.7% and 3.2% respectively. Lloyds, however, managed a rise of 0.2%
Mining and energy stocks were also weak, with ENRC, BHP Billiton and Lonmin all registering falls. Tullow Oil was the only energy stock in positive territory, up 0.16%
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Read the latest stock market news and charts here.
Europe
In Europe, the Paris CAC 40 fell 55 points to 3,785; and the German Xetra Dax was 96 points lower at 5,689.
US
In the US, the Dow Jones fell 1% to 10,285; the S&P 500 lost 1.03% to 1,091; and the Nasdaq Composite was 0.76% down at 2,194.
Asia
In Japan, the Nikkei 225 and the broader Topix index both fell 1.3% to close at 10,004 and 884 respectively. In China, the Shanghai Composite index lost 1.7% to 3,239; and the CSI 300 fell 1.9% to 3,554.
Commodities
Brent spot was trading at $75.61 early today, and in New York, crude oil was at $73.45. Spot gold was trading at $1,136 an ounce, silver was at $17.68 and platinum was at $1,421
Currencies
In the forex markets this morning, sterling was trading against the US dollar at 1.629 and against the euro at 1.1038. The dollar was trading at 0.6778 against the euro and 87.71 against the Japanese yen.
UK news
And today sees the Chancellor, Alistair Darling, reveal his Pre-Budget Report. It is expected to feature a 50% tax on bankers' bonuses. Business Secretary Lord Mandelson said banks must "understand that people will be very disconcerted, and disapproving, to see a return to the excesses, the bonus culture that we have seen in the past."
-
Rightmove: property asking prices hit record highNews Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
