Bomb blasts prompt London shares sell-off
The bomb blasts in Istanbul prompted a sharp sell-off in shares in London today as traders feared a renewed bout of terrorist activity.
The FTSE 100 Index, which had been in positive territory earlier in the day, stood more than 30 points lower as investors deserted a range of sectors.
City Index analyst Tom Hougaard said: “The market looked rather rosy this morning until the explosions in Istanbul.
“The market is clearly pricing in the possibility of more attacks. Therefore traders will be on edge for the time being and I don’t expect the market to recover in a hurry.”
A clutch of stocks were marked lower following the blasts, with investors retreating instead into safer havens such as the tobacco sector.
Henk Potts, of Barclays Stockbrokers, said the targeting of the British consulate will have focused investors’ minds on the terrorism threat.
He added: “This is a reminder that while our economy is improving it just takes a couple of global shocks to send investors back into their shells.”
Meanwhile, Marks & Spencer said staff at its City Metro store close to the HSBC building had escaped injury. M&S has eight outlets in Istanbul.
