Markets End the Quarter with a Whimper

Equity markets ended the last day of the quarter lower in spite of the better economic news from the US Editors 30 September, 2011 | 6:02PM
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Investors showed their growing impatience about the lack of progress in the Eurozone and worries over global growth.

The FTSE 100 closed down 1.32% to 5,128. The European markets had a particularly weak day, with the CAC and Dax down 2.1% to 2,965 and 3.1% to 5,463 respectively.

Any stock with exposure to China had a difficult day’s trading. Burberry’s share price dipped again on fears that one of its key markets may weaken. HSBC and Standard Chartered were both among the day’s top fallers on fears over Asian growth.

The UK banks – Lloyds, RBS and Barclays – also had a rough time on fears over global growth. Intertek group was the weakest on the FTSE 100, falling 9.5%.

At the other end, it was the solid defensive stocks that led the day. Imperial Tobacco, United Utilities and WM Morrisons all showed some resilience. Gold miners led the way with Randgold Resources climbing 2.6% to 6,290 as investors finally started to address the imbalance between the price of gold and the valuations of gold companies.

A number of the property companies were well ahead in early trading. British Land, Land Securities and Capital Shopping Centres group were supported by the view that London property is starting to look like one of the few ‘safe haven’ assets, but succumbed to the wider sell-off by the end of the day.

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