Member Article

Euro Woes Drag Down FTSE Again ? Latest Market Analysis

It was another difficult start to the week for investors on Monday, with Europe’s debt issues once again occupying most minds. Greece admitted that without the bailout funds, agreed in July but not yet received, it would run out of cash in early October. With the Germans in particular adopting a more aggressive stance of late, markets appeared to be pricing in a greater chance of the emergency funds being held back.

European equities plunged in to negative territory at the open and only mildly recovered in the afternoon as US markets opened, with the FTSE 100 closing 85 points lower at 5129.5.

As ever banks were prominent too, in the UK the Independent Commission on Banking made the expected recommendations with regards to ring fencing operations, but suggested a timetable of 2019, which was later than many expected and reduces some pressure.

French banks struggled though on reports Societe Generale was to sell assets and cut costs to improve its capital position. In general listed French banks saw double digit percentage declines so it was with some relief that shares in UK banks were only down by a percent or two.

Elsewhere, bond yields were broadly unchanged, Gold fell slightly to $1832, but Brent Crude reversed early losses to trade slightly higher at $113.2.

This was posted in Bdaily's Members' News section by John Dance .