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CLOSE:The FTSE 100 closed down 151.2 points, or 2.4 per cent, at 6043, wiping £38.7billion off the collective value and more than reversing a surge of over 110 points in the previous session..The UK blue-chip index ended the week down after US jobs figures left traders anxious about the lingering possibility of an interest rate hike by the Federal Reserve later this month.
Official data showed the US added 173,000 jobs in August, fewer than expected but not a weak enough figure to convince investors that a rate hike will be delayed.Retailers were among those on the slide as UK survey figures suggested the high street saw its worst month since the financial crisis in August. Down day: US stocks fell as the latest non-farm payroll numbers were still viewed to be solid enough for the Federal Reserve to consider raising rates at its next policy meeting on September 16-17Markets had climbed on Thursday after the European Central Bank indicated it was ready to extend its money-printing stimulus should recent turmoil in China weigh on growth.But renewed anxiety sent Asian indices lower overnight and there was gloom from Germany, Europe’s economic powerhouse, as it reported a larger than expected 1.4 per cent fall in factory orders.Sentiment was further dampened by the US jobs report.
In New York, the Dow Jones Industrial Average was sharply lower at the time of the close in London.Frankfurt’s Dax and the Cac 40 in Paris were both down by almost 3 per cent. RELATED ARTICLES
Share this article Share The stock market falls come at the end of another rollercoaster week for equities.The FTSE 100 has now finished the first trading week of September well below its closing level of 6247.9 last Friday, building on a dire August which was the worst month for the top-flight in more than three years, amid signs of a slowdown in China.<div class="art-ins mol-factbox floatRHS money" website LEARN HOW TO BE A BETTER INVESTOR FOR FREE The Stock Market Show is your chance to listen to expert seminars on investing and to meet exciting smaller company bosses.The free show on Saturday 12th September is being run by the London Stock Exchange and Shares Magazine, supported by This is Money, and takes place at London’s Islington Business Design Centre.It features seminars and panel discussions on investing techniques and ideas and the chance to grill the bosses of AIM companies. In currency markets, sterling has been under pressure against the US dollar in recent days on fears that UK growth is slowing.The pound was a cent down against the greenback in the latest session, at a little under $1.52.
It also fell a cent against the euro, at a little below €1.37.In London shares, Next was a big faller after a broker downgrade from Exane BNP Paribas, ahead of its half-year results next week.
Shares fell nearly 3 per cent, or 245p, to 7595p.It came as figures from accountancy firm BDO signalled gloom for the wider retail sector, showing high street sales down 4.3 per cent year-on-year in August — the worst decline since November 2008.Shares in Primark owner Associated British Food slipped 58p to 3139p and Dixons Carphone was 18.6p lower at 412.3p. Elsewhere, online gaming firm 888 Holdings edged higher after it was elbowed out of its takeover of FoxyBingo owner bwin.party after being trumped by a £1.1billion proposal from Sportingbet owner GVC.Shares rose 0.5p to 162.5p while bwin fell by 5.2p to 110p.
GVC, which is funding the deal through a 400million euro (£290million) loan from investment firm Cerberus and a £150million share placing, fell 4 per cent, or 18p, to 435p.The only two risers in the FTSE 100 Index were Hikma Pharmaceuticals up 7p at 2350p and International Airlines Group up 0.5p at 565p.The biggest fallers in the FTSE 100 Index were Anglo American down 56.5p at 688.5p, Glencore down 7.8p at 123.2p, Antofagasta down 32p at 564.5p and BHP Billiton down 58p at 1052p.15.00: The Footsie stayed over 2 per cent lower in late afternoon trade as US stocks posted big opening falls after a mixed US August jobs report failed to allay fears that the Federal Reserve could still consider raising US interest rates this month despite the turmoil in global markets.With an hour and a half of trading to go in London, the FTSE 100 index was 136.0 points, or 2.2 per cent lower at 6,058.1, just easing off the day’s worst level of 6,045.95 but still wiping out all of the two-session rally which had followed Tuesday’s 3 per cent plunge.European markets were also sharply lower, with Germany’s Dax 30 index and France’s CAC 40 index both off over 2.7 per cent. Tough decision: The mixed US jobs report for August failed to provide clarity over whether the Federal Reserve, under chair Janet Yellen (pictured), will decide to raise US interest rates in the next few months In early deals on Wall Street, the blue chip Dow Jones Industrial Average dropped 240.5 points, or 1.5 per cent, to 16,134.3, while the broader S&P 500 index shed 25.9 points to 1,925.2, and the tech-laden Nasdaq Composite fell 41.3 points to 4,692.3.US stocks fell as the latest non-farm payroll numbers were still viewed to be solid enough for the Federal Reserve to consider raising rates at its next policy meeting on September 16-17.Only a modest 173,000 new US jobs were created last month, the smallest gain in five months and well below forecasts for a 220,000 rise in non-farm payrollsHowever, employment gains for July and June were revised up by a combined 44,000, putting a slight gloss on the non-farms disappointment.The Labor Department said 245,000 new jobs were created in July instead of 215,000.
June’s gain was revised up to 245,000 from 231,000.David Lamb, head of dealing at forex specialists FEXCO said: ‘Such an insipid rate of job creation appeared to confirm many market-watchers’ fears that the US economy is stumbling. Top movers: risers
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‘But dig deeper and there are some encouraging signs. Wage inflation is up and by more than expected — average hourly earnings rose 8 cents in August.‘Such underlying inflationary currents will ensure that an interest rate hike remains firmly on the Fed’s agenda.’Traders were also cautious as New York markets will be closed for the US Labor Day holiday on Monday when Chinese stock markets will re-open after a two-day holiday, with fresh volatility likely on concerns over an economic slowdown in China which has precipitated recent market turmoil. 13.55: The Footsie extended its sharp falls in early afternoon trading after the key US August jobs report came in mixed, with a bigger than expected drop in the unemployment rate but a below forecast rise in non-farm payrolls, which lifted the dollar but kept US stock futures weak.With less than an hour to go until the Wall Street open, the FTSE 100 index was down 136.9 points, or 2.2 per cent at 6,057,2, wiping out all of a near 135 point two-session rally.In Europe, Germany’s Dax 30 index and France’s CAC 40 index both dropped more, down 2.8 per cent having been boosted yesterday by a European Central Bank pledge to extend its money printing programme if the economy remains weak after the recent turmoil in global markets.US stocks were expected to join in the big retreat today, having ended well off earlier triple-digit highs yesterday on caution ahead of the jobs report, and with New York markets closed on Monday for the Labor Day holiday.The August jobs report failed to give any real clear direction on whether a Federal Reserve rate hike could still be likely in the next few months.The US unemployment rate dropped to 5.1 per cent, down from 5.3 per cent, the lowest level since April 2008.But only a modest 173,000 new US jobs were created last month, the smallest gain in five months and well below forecasts for a 220,000 rise in non-farm payrolls. However, employment gains for July and June were revised up by a combined 44,000, putting a slight gloss on the non-farms disappointment.The Labor Department said 245,000 new jobs were created in July instead of 215,000.
June’s gain was revised up to 245,000 from 231,000. Jobs watch: A strong US jobs number today could help ease fears about a China-led global economic slowdown but it could also rekindle speculation of an early rate hike by the US Federal Reserve And the average hourly wage paid to American workers rose 0.3 per cent in August.Dennis de Jong, managing director at UFX.com, said: ‘Global markets have been jittery all morning and weaker than expected non-farm payroll figures make it almost certain that a US interest rate rise now won’t be happening this month.‘Fear has been spreading across the world with the financial turmoil in China, weak economic data from the Eurozone and low commodity prices that are causing serious problems for emerging countries.‘Fed Chair Janet Yellen is now likely to listen to the IMF and put off any rate hike until some of this turmoil has abated.’The dollar, however, reacted positively to the data, trimming its losses versus the euro to $1.1139, and holding near a fresh three month high versus the pound at $1.5224. 12.25: The Footsie nursed some hefty losses at lunchtime as European markets reversed yesterday’s strong rally on nervousness ahead of today’s crucial US jobs report which could be a trigger for an interest rate hike from the Federal Reserve.By mid session, the FTSE 100 index was 101.0 points, or 1.6 per cent lower at 6,093.1 while in Europe, Germany’s Dax 30 index and France’s CAC 40 index both shed 2.1 per cent.Mike McCudden, head of derivatives at stockbroker Interactive Investor, said: ‘The «will they, wont they» debate over a rate hike in the US is pushing investors to the sidelines once again as we look ahead to key employment data later today.‘However, talk of more stimulus from China and the euro zone in the coming weeks should throw up some buying opportunities for the savvy investor.‘Either way, the investment time horizon for the average investor are currently very short and extreme volatility looks set to continue.’European markets were also unsettled after eurozone data showed that although retail sales rose again in August, the pace of increase slowed from the previous month.The index fell from to 51.4 in August from July’s 54-month high of 54.2, but remained above the 50 threshold that signals expansion for the fourth consecutive month.Retailers were a big focus in London following a gloomy survey saying conditions on the high street are the worst since the financial crisis, with some broker comment also weighing.Next was a big FTSE 100 faller, down nearly 4 per cent or 295p to 7.545p after broker Exane BNP Paribas downgraded its rating to underperform from neutral in a retail sector review.Exane said that while one year comparatives look supportive, considering the two previous years, the headwind is more significant than may be expected. ‘Given this, upside risk looks more limited from here.
With relative valuation also stretched, we move to underperform,’ the broker’s analysts said.Exane did upgrade its rating for DIY retailer Kingfisher to outperform from neutral, but the B&Q owner’s shares failed to respond, shedding 2.6p at 351.6p.Broker comment also blighted engineering group GKN, down 3 per cent or 8.7p to 272.6p, with Investec Securities cutting its stance to hold from buy and slashing its price target to 300p from 370p.But in the FTSE 250 index, Booker Group was among the best performers, https://www.bdoforex.com/ up 1 per cent or 2.2p to 178.4p as JP Morgan raised its price target for the grocery wholesaler to 200p from 174p.The move came a day after Booker issued a trading update and afetr it said the UK’s Competition and Markets Authority had approved its takeover of convenience store chains Londis and Budgens.Among the small caps, AIM-listed software group IS Solutions leapt 36 per cent, or 18.5p higher to 70.5p after it said its full year revenue and profit are both set to beat market expectations amid strong trading.Meanwhile, shares in commodities small cap Goldplat jumped nearly 17 per cent, or 0.375p higher to 2.625p after announcing that it has made significant progress to improve production and efficiency at its gold recovery operation in South Africa.But Kodal Minerals was a big faller, dropping 36 per cent or 0.02p to 0.035p after the mining and exploration company wrote off the value of its phosphate and iron project in southern Norway as it slumped to a £4.0million pretax loss for the year to March 31.10.00: The Footsie stayed weak as the morning session progressed, giving back almost all yesterday’s sharp gains on caution ahead of today’s crucial US jobs report, with retailers the main casualties after a survey showed conditions on the high street are the worst since the financial crisis.By mid morning, the FTSE 100 index was down 99.4 points, or 1.6 per cent to 6,094.7, reversing most of a surge of more than 130 points made in the previous two sessions.Renewed anxiety over global growth, particularly from China, sent Asian indices lower overnight and there was gloom from Germany, Europe’s economic powerhouse, today as it reported a larger than expected 1.4 per cent fall in factory orders. Sliding again: After rallying for two straight sessions following Tuesday’s 3 per cent plunge, the FTSE 100 index erased a big chunk of that recovery today on caution ahead of the crucial US August jobs dataThe mood was also gloomy in Europe, with Germany’s Dax 30 index and France’s CAC 40 index both both 1.8 per cent. Equity markets had been buoyed yesterday by remarks from European Central Bank president Mario Draghi indicating that it was ready to extend its money-printing stimulus programme should turmoil in China weigh on growth.On currency markets, the euro recovered slightly after shouldering sharp falls yesterday on the Draghi comments, gaining 0.2 per cent versus the dollar at €1.1142, and 0.3 per cent against the pound at €1.3667.Sterling was also a touch lower against the dollar at $1.5231 as expectations that the Federal Reserve will still hike interest rates remain high, although much depends on today’s US jobs report, while Bank of England rate hike expectations have been pushed further out following recent weak UK data.Alastair McCaig, market analyst at IG said: ‘Although institutional consensus still points towards a September start date for the US to start raising interest rates, this has been undermined by recent volatility and downturns in wage growth numbers. ‘As a result, there has been a discernible number of firms now shifting their call on the first rise to December.‘Today’s job figures are unlikely to be able to confirm a September start date but they do have the ability to write off September and leave December as the only candidate for a 2015 hike.‘If last month’s job growth does undershoot expectations then an immediate bounce in EURUSD is distinctly likely as traders look to recover some of the ground lost yesterday.‘On a quiet day for corporate news, Next was among the biggest fallers as retailers suffered from the glum high street survey.Accountancy firm BDO said its monthly high street sales tracker showed a 4.3 per cent year-on-year fall in August sales, the biggest drop since November 2008 and the sixth monthly dip this year. The fashion firm was also hit by a broker downgrade from Exane BNP Paribas, ahead of its half-year results due next week.
Next shares fell 3 per cent, or 257.5p, to 7,582.5p.Elsewhere, online gaming firm 888 Holdings dropped 5 per cent, or 3.9p lower to 158.1p after it was elbowed out of its takeover of FoxyBingo owner bwin.party after being trumped by a £1.1billion proposal from Sportingbet owner GVC.Bwin shares rose 0.6p to 115.8p.
GVC, which is funding the deal through £290million loan from investment firm Cerberus and a £150million share placing, fell 10.5p to 442.5p. 08.45: The Footsie dropped back in early deals, reversing yesterday’s gains in tandem with weaker Asian markets as nervousness set in ahead of today’s August US non-farm payrolls report, with the numbers seen as crucial for the Federal Reserve’s pending interest rate decision.After around three quarter of an hour of trading, the FTSE 100 Index was 64.2 points, or 1.0 per cent lower at 6,129.9, with European markets also weaker — Germany’s Dax 30 index and France’s CAC 40 index both lost around 1.3 per cent.The UK blue chip index closed 110.8 points higher yesterday, extending its recovery into a second straight sessions on some respite over China worries and after ECB president Mario Draghi made clear that the central bank stood ready to extend its money-printing programme should the eurozone’s modest recovery look in jeopardy. Next down: The clothing and homewares retailer topped the FTSE 100 fallers list, as the sector suffered after a survey said August was the worst month for British retail sales since the global financial crisis of 2008But US stocks ended well off their best levels overnight, with the Dow Jones Industrial Average closing just 23.38 points higher at 16,374.76, having registered a triple-digit jump during its morning session, and Asian shares beat a retreat today on caution ahead of the US jobs report.Connor Campbell, financial analyst at Spreadex said: ‘A correction of yesterday’s arguably overenthusiastic post-ECB conference surge, a China-fearing Asian session and a widespread case of pre-non-farm jitters have all contributed to a dismal open for the European markets. ‘Despite the absence of China from the market landscape for the past 2 days, its presence was still felt in the Asian session, with big losses in Japan (the Nikkei hitting a 7 month low) and Hong Kong as nervy investors shed risk ahead of next Monday, which could bring with it a Chinese market lacking the price-lifting last-minute support its government had been providing in the run up to the end of week military parades.’He added: ‘All of today’s focus is on arguably the most important non-farm payroll figures in recent times, and certainly the most vital in 2015, and European investors are unlikely to want to do much until after the figures are released.’Stocks in focus in London include:BWIN.PARTY, GVC HOLDINGS, 888 HOLDINGS — Online gambling firm GVC Holdings said it has reached an agreement with Bwin.party on the terms of a £1.06billion recommended takeover offer, a deal that values each Bwin share at 129.64p.The deal means that Bwin has accepted GVC’s offer over a previously-agreed rival bid from 888.
Bwin shares gain 1.9p at 117.1p; GVC shares fall 8p to 445p; 888 shares drop 5 per cent, or 8p to 154p.NEXT — The clothing and homewares retailer tops the FTSE 100 fallers list, dropping 2.5 per cent as the sector suffers after a survey by BDO said August was the worst month for British retail sales since the global financial crisis of 2008. Meanwhile, employee-owned retailer John Lewis said its department store sales were down 3.4 per cent over the latest week compared with a year earlier. Next also hit as French broker Exane BNP downgrades its rating to underperform from neutral and cuts its price target to 7,400.00 pence from 7,700.00p.
The high street firm posts first half results next Thursday. Shares down 195p to 7.645p. DIXONS CARPHONE — Shares in the electricals retailer track sector weakness, down 12.2p at 418.7p ahead of a trading update due next Thursday.ANGLO AMERICAN — Commodity stocks fall as metal prices retreat again after weakness in Asian markets on continuing worries over China and ahead of today’s crucial US jobs data.
Anglo shares lose 15p at 710p, impacted too by a slash in its price target from broker JP Morgan Cazenove to 690p from 910p.BP — The energy giant’s shares fall 9.6p to 346.3p as the oil price eases again, with Brent crude dipping back below $50 a barrel, and as broker BofA Merrill Lynch cuts its rating for the stock to underperform from neutral.HIKMA PHARMA — Shares in the generic drugmaker gain 8p at 2,351p as Goldman Sachs ups its rating to buy from neutral.ASTRAZENECA — The drugmaker said the US Food and Drug Administration had approved a new dose of its blood thinner, Brilinta, for patients with a history of heart attack beyond the first year.
Shares slip 3.5p at 4,244.0p.POLYUS GOLD — Pavel Grachev, the chief executive of Russia’s biggest gold producer said that it is in the company’s interest to remain publicly-traded, but he declined to comment on a possible buyout offer by the firm’s largest stakeholder.
Shares down 1 per cent, or 2.00p to 193.25p. 07.45: The Footsie is expected to open around 93 points lower, dropping back in tandem with Asian markets after US stocks ended well below session highs as nervousness sets in ahead of today’s US jobs report, with the data seen as crucial for the Federal Reserve’s pending rate decision.The FTSE 100 Index closed 110.8 points, or 1.8 per cent higher yesterday at 6,194.1, extending its recovery into a second straight session on some respite over China worries, and as ECB president Mario Draghi made clear that the central bank stood ready to extend its money-printing programme.But US stocks ended well off their best levels overnight, with the Dow Jones Industrial Average closing just 23.38 points higher at 16,374.76, having registered a triple-digit jump during its morning session, and Asian shares beat a retreat today. Caution: US stocks ended way below session highs as nervousness set in ahead of today’s August US non-farm payrolls report, with the numbers seen as crucial for the Federal Reserve’s pending rate decisionChina’s financial markets, were closed again for a national holiday, but a flood of data from China in coming weeks is likely to point to further weakness in the world’s second-largest economy and thus keep up the pressure on global markets.A strong US jobs number today could help ease fears about a China-led global economic slowdown but it could also rekindle speculation of an early US rate hike.Craig Erlam, senior market analyst at Oanda said: ‘It would appear we’re going to see risk aversion in the markets on Friday ahead of what is clearly a very important jobs report for the US, the final one before the September Fed meeting in under two weeks.‘This cautious approach prior to such a key release is quite common in the markets, especially when this release could determine whether we see a change in monetary policy, on this occasion the first rate hike in almost a decade.‘Ordinarily I would suggest that we don’t get too carried away with one release in isolation as alone, it’s unlikely to have a significant impact on policy makers decision making, but on this occasion it may.‘Stanley Fischer, vice Chair of the Federal Reserve, said so much last week in an interview at Jackson Hole.
Policy makers have a very difficult decision on their hands at this meeting and recent events in the markets have only made their decision harder. The decision could well be on a knife edge and that’s what makes today’s data so important, it could swing it in either direction.‘As always, there’s going to be an emphasis on the non-farm payrolls reading and the unemployment rate as they’re the ones that tend to write the headlines.
We’re expecting 220,000 jobs to have been created in August which is good, although nothing to write home about, and the unemployment rate to fall to 5.2 per cent.’Erlam concluded: ‘The fact is, rightly or wrongly, investors are going to look to today’s data and view it as either the final nail in the coffin for a September rate hike or the data that puts it back on the table.
With that in mind, I would expect to see a lot of volatility around the release.’ There will be little to provide any distractions ahead of the all-important US jobs report, with almost no corporate news scheduled for release in London, and the only UK data the latest new car registrations.Retailers could suffer, however, after a survey released overnight, said August was the worst month for British retail sales since the global financial crisis of 2008.Accountancy firm BDO said its monthly high street sales tracker showed a 4.3 per cent year-on-year fall in August sales, the biggest drop since November 2008 and the sixth monthly dip this year. UK company news scheduled today includes:Interims: EMIS GroupAGMS: Latchways, Scholium Group, Torotrak Economic news scheduled today includes:US non-farm payrolls at 1.30pmUK new car registrations at 9amGerman factory orders at 7ameurozone revised Q2 GDP at 10am
