Discouraging Remarks from Europe Drive the FTSE 100 Further Down the Red Zone
Great Britain’s FTSE 100 disastrously went down the other day adding more insult to their extended losses in the earlier openings of the week. This current stand deeply weighed much concern and worries to the European Central Bank that it might not deliver the much needed boost to engage in this week’s worldwide economic hold back as comments by German policy makers further knocked optimism.
At the end of the closing, the FTSE 100 was down 45.97 or 0.8 per cent at 5,647.66 was weighed relatively feeble results from BP. Yet, the index ended the month up to a total of 2 per cent. Volume was yet again inconsistent as it is weak at 73 per cent of its 90-day daily mean average with plenty of investors keeping to the sidelines far ahead of the central bank guidelines and announcements.
The German’s finance ministry restated its remarks the previous day that there is no need to approve a banking license to the European Stability Mechanism which is regarded as the new bailout method that is to be used by the Eurozone in the unlikely event of a currency meltdown. A banking license would permit the ESM to scrounge added credit from the ECB and buy bonds from indebted countries.
The news cut-short the FTSE’s three-day streak rally prompted by the ECB president Mario Draghi’s promise last week to do in his capacity to protect the Euro which stimulated new hopes that the bank will be able to resume purchasing bonds to help ease the burden of the increasing Spanish and Italian borrowing costs.
Banks were the worst performing sector, stopping a four-day winning rally and taking a united 11 points off the FTSE as pitiable results from European partners UBS and BBVA capped the drive in the sector. Oil Company BP went down 4.2 per cent following a $5 billion charge in its second quarter results, struggling under the weight of proceedings over the 2012 oil spill issue along with its Russian associate.
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