Newspaper article The Journal (Newcastle, England)

Stock Watch; Stocks and Shares

Newspaper article The Journal (Newcastle, England)

Stock Watch; Stocks and Shares

Article excerpt

Byline: Graeme Evans and Russell Lynch

THE FTSE 100 Index dived 3% yesterday after the world's biggest bank revealed further massive losses on high-risk mortgage investments.

Citigroup's pounds 9.2bn write-down on sub-prime mortgages sent a shudder through the FTSE 100 Index, which closed 190.1 points lower at 6025.6.

The fall, which wiped pounds 45bn from the value of blue-chip shares, left the Footsie at its lowest close since the start of the credit crunch last August.

As well as Citi's fourth-quarter losses of pounds 5bn, investors were spooked by weaker-than-expected retail sales figures in the US.

In London, the Citi news put major banks on the back foot, with HSBC shares down more than 4%, or 38.5p, to 772.5p. Meanwhile Barclays fell 16p to 464.5p, Royal Bank of Scotland slipped 24.5p to 392p and Lloyds TSB was 19p down at 406p.

Taylor Wimpey was the leading Footsie faller, down 8% as investors fretted about the state of its US house building business.

Shares were earlier in positive territory after a trading statement from the UK's biggest house builder was met with relief in the City. …

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