FTSE down 2% as bull market runs out of steam
15/05/2006 - 09:43:52The FTSE 100 Index dived by more than 2% today as world markets extended heavy losses seen before the weekend.
The latest slump saw the Footsie fall by 152 points to 5759.8 in the first hour of business, amid signs the bull market that has seen shares rise in value by a third over the past two years has run out of steam.
Concerns about rising inflation and the impact of the weak US dollar on the earnings of UK companies have put pressure on the London market, with the Footsie falling by more than 2% on Friday – its worst percentage decline in two years.
The top-flight index is now a long way from the five-year high of 6132 last month.
Jeremy Batstone, of Charles Stanley Stockbrokers, said: “It’s a correction at the moment and it’s too early to call it anything more sinister.”
