Replace this Title Claudia Sonea

The Financial Times Stock Exchange Index, a share index of the 100 most highly capitalized companies listed on the London Stock Exchange, had the biggest decline since it was founded on 3 January 1984. It represents about 80% of the market capitalization of the whole London Stock Exchange and points out once again how the credit crunch can damage, ending below the key 6,000 level, at 5,858.9 points. Only last September there was a similar fall that brought changes making BP, Royal Dutch Shell, HSBC Holdings, the Vodafone Group, the Royal Bank of Scotland Group and GlaxoSmithKline the 6 largest constituents of the index. Despite the recent losses financial stocks have started to gain some pounding, Standard Chartered, a British bank headquartered in London, listed on the London Stock Exchange and one of the top 20 constituent members of the FTSE 100 Index, led with a tumble of 7.6 percent. Most of the listed companies have dropped on the stock market: Barclays, Royal Bank of Scotland, HSBC, and HBOS between 2.5 and 4.4 percent; INVESCO and Schroders between 6.5 and 3 percent; Man Group, the 55th company, lost 8.6 percent; Northern Rock shed 4.2 percent; only British Land's losses were limited to 0.7 percent because of a buyback. John Haynes, senior equity strategist at Rensburg Sheppards states that the subprime mortgage rate fears are reflected in the sell-off in equities and the present situation will impose a repricing of the investment risks. The announcements of Wall-Mart Inc and Home Depot Inc. created this shock by confirming the fears on the housing sluggish. Countrywide Financial Corp., the largest U.S. mortgage lender, increased worries drawing down an entire $11.5 billion credit facility due to a shortage of credit weighs. Another problem that is worsening things is the job matter, jobless benefits being in high demand. To stop the falling of shares' prices ECB injected a large amount of cash, but Fed has still not made a move. Waiting for Fed's move, stay connected and watch the stock market, but don't forget, nowadays no one is a winner!

related story: http://uk.news.yahoo.com/rtrs/20070816/tuk-uk-markets-britain-stocks-fa6b408_12.html

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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