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Uk’s Ftse 100 Index Falls

The U.K.?s FTSE 100 index moved sharply lower on Friday amid a global stock-market selloff spurred by worries over slower growth in China and renewed financial volatility in Latin America.

UK FTSEThe benchmark index?slid 1.6% to end at 6,663.74, marking the lowest closing level in two weeks. On the week, the index dropped 2.4%, the worst weekly performance since June.


Investors in Europe have plenty to watch next week from inflation data to U.K. GDP. But they?ll be casting an eye toward the U.S. as the Federal Reserve meets.

Shares of Aberdeen Asset Management PLC ??led decliners, off 5.7%, after Morgan Stanley cut the company to underweight from equal weight, with the analysts saying they continue to avoid asset managers that are skewed toward emerging markets.

?Deteriorating fund performance compounds challenge EM fundamentals, increasing the risk of negative revisions and further multiple de-rating at [Aberdeen Asset Management],? they said.

Emerging markets were also on the spotlight in the broader market on Friday, after currencies in countries such as Argentina, Turkey and South Africa plunged, in a global flight to safe havens like the yen and U.S. Treasurys. On Thursday, emerging-markets stocks hit a four month low , after weaker-than-expected Chinese data spurred worries about growth in the global economy.

Resource firms and banks, which are sensitive to risk appetite in the markets, were among the biggest decliners on Friday. Among miners, shares of Rio Tinto PLC?lost 2.3% and Glencore Xstrata PLC UK ?dropped 2%.

In the banking sector, heavyweight HSBC Holdings PLC ??gave up 2%, Barclays PLC ?fell 2.4% and Royal Bank of Scotland Group PLC ?erased 1.5%.

Also of interest in the U.K., the pound dropped against most major currencies, after Bank of England governor Mark Carney late Thursday in Davos, Switzerland said there is no need to hike interest rates immediately, even as the unemployment level moves closer to the 7%. On Friday, Carney said the BOE will update its forward guidance next month, responding to a much faster-than-expected drop in the unemployment rate.

The central bank said in August it wouldn’t consider increasing interest rates until the joblessness level drops to a threshold of at least 7%. The pound ??traded at $1.6491, down from $1.6635 late Thursday.

Source MarketWatch


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