Posted on 08/16/2007 6:48:30 PM PDT by TigerLikesRooster
FTSE plummets below 6000 but Dow rallies late on
The FTSE 100 index has closed at its lowest level since September 2006 as every stock finished the day down.
The fall was heavier than last Friday's collapse and wiped nearly £60 billion from the UK's leading companies.
Once more the FTSE took its cue from the US where more problems relating to the mortgage sector caused the Dow Jones to slump.
Countrywide, America's biggest home loan lender, revealed it has borrowed £11.4 billion US dollars (£5.8bn) from a consortium of banks to see it through the current credit crisis.
And investment bank Merrill Lynch has warned that the future of Countrywide is at risk.
But a late rally saw the main Dow Jones index claw back losses in the final 45 minutes to finish the session down just 0.12 per cent.
Banks and mining companies fared worst in London but trading screens were a sea of red as every member of the FTSE finished the day down.
The index eventually closed 4.1 per cent down, the biggest one day percentage fall since March 2003, at 5858.9.
Head fake.
Anybody that thinks there is *not* a Plunge Protection Team after seeing today’s graphs from about 1 PM to the close can just hang out with the 911 Truthers as far as I’m concerned.
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