The FTSE 100 dipped 3 points to close at 6,053. The banking sector slipped back after the Bank of England’s ‘bail-out’ conditions were more stringent than expected.
Across the Channel, the Paris CAC-40 fell 51 points to end the day at 4,910. And in Frankfurt, the DAX-30 fell 56 points to 6,786.
On Wall Street, US stocks slipped back as Bank of America’s earnings disappointed. The Dow Jones fell 24 points to end at 12,825. The broader S&P 500 closed 2 points lower at 1,388, while the tech-heavy Nasdaq gained 5 points to close at 2,408.
In Asia this morning, Japanese stocks fell as broker Nikko Citigroup downgraded carmakers. The Nikkei 225 fell 148 points to 13,547.
Crude oil was trading at around $117.26 this morning. Meanwhile Brent spot was trading at $113.61.
Spot gold was trading at around $918 an ounce this morning, while silver was trading at $17.41.
Turning to forex, sterling was trading at 1.9781 against the dollar, and at 1.2439 against the euro. The dollar was last trading at 0.6299 against the euro and 103.16 against the Japanese yen.
And this morning, as expected, Royal Bank of Scotland has announced a record £12bn rights issue. It wrote down its balance sheet by £5.9bn. It plans to keep its core tier 1 capital above 6%, compared to the current ratio of below 5%.
Our recommended articles for today...
The big shock that could hit the US
- The US needs a revolution in town-planning and lifestyles, writes Tom Bulford. He finds it hard to conceive how any society could be set up to be more destructive of the environment than the USA. To find out why Americans need to change the way they think or they’ll be in for a rude shock, read: The big shock that could hit the US
Can Ben Bernanke stop the credit crunch?
- Economists differ in their opinions as to why the Great Depression happened and how it could have been solved. The eminent economist, Milton Friedman, believed it was primarily because the Fed failed to act in time and that if they had acted, it could have solved the financial crisis by providing ‘liquidity.’ Bernanke is now following this advice. But what if Friedman was wrong in the first place? To find out why Bernanke’s measures will not help the crisis, but will actually make it worse, click here: Can Ben Bernanke stop the credit crunch?