Yesterday’s Market Summary
The never ending Greek debt saga continued to trouble investment markets on Monday, as the failure of EU finance ministers to agree a rescue package for the beleaguered nation sent shares sharply lower in early trading. Having fallen by over a percent by mid morning, the FTSE 100 slowly clawed back ground during the day, aided by news that the EFSF (European Financial Stability Fund) would have its guarantees extend from 440 billion Euros to 780 billion. London’s blue-chip index eventually closed 21.5 points lower at 5693.5.
Bailout packages and emergency loans are available to Greece, but only with the proviso that the authorities implement austerity measures that make those seen and expected in the UK pale in comparison. The Greek Prime Minister is struggling to get his own party to agree to the measures, despite replacing his cabinet, and a rioting populous have made their feelings quite clear too.
Fears the financial crisis could spread from Greece to Europe’s banking institutions saw UK banks top the list of fallers, especially Royal Bank of Scotland, whose shares fell over 4%.
Shares in local software giant Sage held up relatively well, despite broker comments that the company was an unlikely takeover target, following market rumours on Friday that US heavyweights IBM and SAP could be lining up a bid. Although the company declined to comment on the possibility, which had been made in a trade publication, broker Panmure Gordon suggested the idea held no merit, and the shares fell 2.1p to 278p.
Oil (Brent Crude), ended 0.5% lower at the London close, continuing the recent downward trend that could just provide the boost the global economy needs to sustain its recent recovery.
This was posted in Bdaily's Members' News section by John Dance .
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