Market overview: Late rally not enough
Nov 20, 2008
Close: A late rally lifted Footsie off earlier lows but it was still a day of heavy losses as economic worries hit stocks around the world.
The life insurance sector was well under the cosh. Prudential and Aviva fell 16%, with Legal & General also showing double-digit falls on worries on the performance of their life funds in current volatile conditions.
Miners tracked metals prices lower as the economic worries stoked fears demand for their use in construction and industry will slow.
Man Group took a beating even after UBS started coverage on the asset management group with a 'buy' rating, while being less generous to Man's peers.
Banks were a bright spot, with Royal Bank of Scotland, HBOS and Lloyds TSB all showing big gains.
Retailers were buoyant though, with B&Q owner Kingfisher and Marks and Spencer among the top 10 risers after some cheery updates from Mothercare and Halfords. Both of the latter were among the FTSE 250's top risers.
FTSE 100 closed down 130 at 3,874.
16:20 London has bounced off its lows for the day as Wall St has steadied after a weak start. Banks are leading the revival with Royal Bank of Scotland, HBOS and Lloyds TSB all showing big gains. Better than expected retail sales figures have given Next and Kingfisher a lift. By contrast, the life sector continues to get a real kicking. Prudential is down 16%, Legal & General and Aviva are also showing double-digit falls on worries on the performance of their life funds in current volatile conditions. FTSE 100 down 120 at 3,885.
15:45 Footsie's losses have grown further after a slide in US shares. Wall Street was battered by data showing a rise in unemployment. Insurer Aviva still leads Footsie lower. Retailers are buoyant though, with B&Q owner Kingfisher and Marks and Spencer among the top 10 risers after some cheery updates from Mothercare and Halfords. FTSE 100 down 160 at 3,845.
14:20 Losses have widened to the triple-digit level now as investors offload shares in insurers and miners. HBOS and Lloyds TSB are leading the risers though as the merger between the two banks now appears a done deal. Lonmin bucks the trend in the mining sector, undoing some heavy losses recently. FTSE 100 down 102 at 3,903.
13:00 Insurers and commodity-related stocks are keeping Footsie well in the red. Aviva is the heaviest faller, joined in the bottom 10 by fellow insurers Legal and General and Prudential. Eurasian Natural Resources leads a decline in mining stocks after copper fell to a three-year low, while with crude falling near $50 a barrel, oil group Cairn Energy falls back. Asset manager Schroders falls after UBS started coverage on the firm with a 'neutral' rating. FTSE 100 down 70 at 3,935.
11:25 Footsie stays firmly below the 4,000 point mark. Among the stocks keeping the leading share index lower is Schroders after UBS started coverage on the asset manager with a 'neutral' rating. Life insurers are taking a hammering on worries over how they will be affected by falling equity markets. Legal & General, Aviva and Prudential are all sharply lower. FTSE 100 down 88 at 3,916.
10:45 Footsie is struggling to make headway in the face of yesterday's gloomy economic news from the US. Life insurers are taking a hammering on worries over how they will be affected by falling equity markets. Legal & General, Aviva and Prudential are all sharply lower. Royal Bank of Scotland is the best performer ahead of its meeting to vote on its government-guaranteed fund raising next week. Retailers are also doing OK after better than expected retail sales data. FTSE 100 down 87 at 3,918.
09:26 Insurers are the main area of weakness this morning with Prudential, Aviva and RSA all sharply lower. Retailers Marks & Spencer, Next and Kingfisher provide some isolated spots of cheer. FTSE 100 is down 74 at 3,931.
08:22 London's top stocks have opened lower after the Dow Jones closed below 8,000 for the first time in over five years, sparking a global sell-off.
Rolls-Royce said it will axe around 4% of its workforce in 2009, with 140 likely to go at the engine maker's assembly and test facility in Derby. Car and bicycle parts retailer Halfords boosted profit by 3% during the first six months, but like for like sales fell 1.1% and have slowed further since the end of the half-year. FTSE 100 is 89 points lower at 3,915.
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