Mounting Middle East tensions fuel FTSE retreat

Posted in Wrestling Forums by pletchercmd at 13:37, Sep 08 2013

é??ç¸?ounting Middle East tensions fuel FTSE retreat

Federal Reserve crimped risk appetite.

Reopening after a public holiday, London's bluechip shed 51.13 points, or 0.8 percent to 6,440.97, costing the index all the previous session's gains, albeit in low volumes.

Crisis in Syria was the most imminent concern for investors as the West told rebels fighting President Bashar alAssad that it could hit the country within days.

"The markets are jittery as Russia and Iran issued strong warnings against any Western military action. debt ceiling worries and tapering talk, have put stock markets firmly on the back foot," said Rikin Thakrar, senior dealer at Spreadco.

Middle East tensions have sent the price of oil spiralling higher, raising costs for companies and a potential drag on airline shares, according to broker Investec.

Currently around $111 a barrel, Investec said in a note that prices above $100 a barrel were a severe headwind to airlines' profitability and one of the reasons it cut its rating on British Airways owner IAG to "hold" from "buy" in a broader note on airlines. IAG fell 4.8 percent.

Against the background of preparations for possible outside military action in Syria, investors have been sent scurrying for safehaven investments such as gold.

Precious metals miners such as Fresnillo and Randgold Resources rose as much as 7.1 percent as investors used the equities as a proxy for the yellow metal. scales back stimulus as early as September remain the longerterm hurdle for the market to get over, with worries that it could stall the momentum of the the north face sale current anaemic recovery.

The market, however, has begun pricing in a pullback in stimulus in the United States. Government debt yields have risen across the board recently, while the FTSE 100 <a href="http://www.karocchio.eu/doudounecanadagoose/">doudounecanada goose femme pas cher</a> stalled after rallying 10 percent from midJune lows.

Stewart Richardson, chief investment officer, at RMG Wealth, warned: "If equities begin to struggle (after shortterm support was recently broken), then traders and investors scarpe prada online may become more convinced that they switch some funds away from equities and perhaps back to bonds."

Financials banks, insurers and asset managers <a href="http://www.barrioroma.it/pradaoutlet/">scarpe prada online</a> <a href="http://www.barrioroma.it/stivaliugg/">ugg italia</a> which are highly exposed to the fortunes of the broader economy, took 27 points doudounecanada goose femme pas cher off woolrich jassen heren the FTSE 100.

Statebacked Royal Bank of Scotland fell 4.1 percent, among the worsthit of UK lenders in a broad European sector retreat, weighed down by a newspaper report that members of parliament raised pressure for the <a href="http://www.photo2video.co.uk/northfaceoutlet/">the north face sale</a> bank's breakup.

Riskier miners, already down 15.1 percent in 2013 on concerns over dwindling demand from the world's largest economies, took another 9.5 points off Britain's leading share index as Antofagasta announced firsthalf profit had dropped by nearly a third. Its shares fell 3.3 <a href="http://www.postzegels-poststukken.eu/woolrichjassen/">woolrich jassen heren</a> percent.

UK oil services firm Petrofac, however, jumped 8.5 percent in heavy volume after the company said it expects ugg italia a stronger secondhalf performance, with analysts at Liberum saying the share was a "buying opportunity" on recent weakness.

Britain's Bunzl, distributor of goods such as carrier bags and hygiene products, rose 1.6 percent after delivering aboveforecast firsthalf profits.

Bullish broker comment helped retailer Marks Spencer rise 1.6 percent after Citigroup raised its recommendation on the company to "buy" from "neutral".