Ftse close_ footsie finishes in red as fed ‘feel good’ factor fades away _ this is money

17.20: The FTSE 100 closed down 50.12 points at 6052.42 as the upbeat response to this week’s US rate hike began to diminish. The Dow Jones fell for the second day in a row, shedding 221.6 points to trade at 17,274.3, whil Germany’s DAQX and France’s CAC 40 both lost 1 per cent of their value. However, the oil price held its ground, with Brent crude at nearly $37.50 a barrel and US WTI crude at $35.50. Market watch: The Dow Jones in New York is in the red for the second day in a row ‘The index has waned through the day as the last full trading week of 2015 draws to a close,’ says Tony Cross of Trustnet Direct.

‘This is significant,


as volumes will likely be impacted in the run up to Christmas, so further exacerbated volatility is likely to be seen in the remaining days of 2015. Share ‘Anglo American has rebounded into the weekend break after recent losses with some value hunters in play here, whilst Carnival Cruise Lines is also floating towards the top of the index off the back of its earnings update this afternoon. ‘Pressure absolutely appears to be on the downside however as the market continues to digest the implications of that Federal Reserve rate hike. Suggestions that we were working ‘off-book’ and how this hike would be applauded by the market seem to be falling flat already and if this doesn’t change then festive cheer could well be thin on the ground as we run down to the break.’ The FTSE 100 closed down 50.12 points at 6052.42 as the upbeat response to this week’s US rate hike began to diminish.

The Dow Jones fell for the second day in a row, shedding 221.6 points to trade at 17,274.3, whil Germany’s DAQX and France’s CAC 40 both lost 1 per cent of their value. However, the oil price held its ground, with Brent crude at nearly $37.50 a barrel and US WTI crude at $35.50. ‘The index has waned through the day as the last full trading week of 2015 draws to a close,’ says Tony Cross of Trustnet Direct. ‘This is significant, as volumes will likely be impacted in the run up to Christmas, so further exacerbated volatility is likely to be seen in the remaining days of 2015. Anglo American has rebounded into the weekend break after recent losses with some value hunters in play here, whilst Carnival Cruise Lines is also floating towards the top of the index off the back of its earnings update this afternoon. ‘Pressure absolutely appears to be on the downside however as the market continues to digest the implications of that Federal Reserve rate hike. Suggestions that we were working ‘off-book’ and how this hike would be applauded by the market seem to be falling flat already and if this doesn’t change then festive cheer could well be thin on the ground as we run down to the break.

‘ In a session with little economic news, the pound was up slightly against the US dollar at $1.49 today and slightly down against the euro at just over €1.37. Mining stocks staged a recovery in the London stock market with Anglo American up 15.1p to 278.7p, BHP Billiton 17.2p higher to 717.2p while Fresnillo climbed 4.5p to 659p. Sports Direct International slipped 6.5p to 570p, after its board said founder and Newcastle United FC owner Mike Ashley will oversee a review of all agency worker terms and conditions at the company. The move follows criticism of the retail giant’s pay and employment practices, including the use of zero hours contracts, under which staff do not know how many hours they will work from one week to the next. The retailer said it wanted to counter “unfounded criticisms” of its employment practices. Cruise ship operator Carnival lifted 2 per cent or 94p to 3648p after it boosted earnings to $1.8billion (£1.2billion) in the 12 months to the end of November compared to a year ago, on higher bookings and lower fuel costs. It added that its advance bookings for the first three quarters of 2016 are well ahead of the prior year, although it is facing a stronger US dollar.

Elsewhere, oversized fashion retailer N Brown fell 11.5p to 291.5p, after broker Jefferies lowered its target price on the firm to 415p from 430p, saying another mild end to the year has created challenging retail conditions through to the start of December. The biggest risers in the FTSE 100 were Anglo American up 15.1p at 278.7p, Smith & Nephew up 52p at 1172p, Carnival up 94p at 3648p and BHP Billiton up 17.2p at 717.2p. The biggest fallers in the FTSE 100 were BG Group down 37.8p at 908p, BT Group down 12.4p at 458.3p, Associated British Foods down 77p at 3327p and Dixons Carphone down 10.9p at 477.1p. 17.01: The FTSE 100 closed down 50.12 points at 6052.42. More to come. 15.30: The Footsie made further losses in late afternoon trading after US bourses got off to another slow start as investors grapple with falling crude oil prices and a strong dollar which has put pressure on company earnings.

With an hour to go, the FTSE index was down 45.2 points at 6,057.1, having risen more than 40 points in the previous session following the US Federal Reserve’s decision to call time on near-zero borrowing costs by raising its key interest rate to 0.5 per cent. All at sea: Oil prices are still below $35 and could hit $20 a barrel according to Goldman Sachs But the good sentiment after the Fed’s decision has long gone and in New York at the opening bell the Dow Jones industrial average fell 25.79 points to 17,470.05, the S&P 500 lost 4.85 points to 2,037.04 and the Nasdaq Composite index dropped 22.15 points to 4,980.40. A sharp drop in oil prices – settling below $35 a barrel – has hammered energy companies once again. Things were not helped by Markit’s flash US services PMI reading, which came in at 53.7 for December, as the sector’s output slowed to a 12-month low. Economists had estimated that the flash services PMI would be 55.9. Chris Williamson, Markit chief economist, said: ‘A lack of inflationary pressures, slowing growth and a drop in business confidence to a five-year low are all disappointing news for an economy which has seen the first US interest rate hike for almost a decade. ‘The Fed projections point to a further four quarter point hikes in 2016, but with data as weak as these, we’re likely to see a far less aggressive rate hike progression.

‘ Connor Campbell, at Spreadex, said: ‘After a morning of middling losses the market’s shade of red intensified this afternoon, a dour open for the Dow dragging the European indices further into the muck. ‘Falling by around 200 points the Dow Jones was the main catalyst for the recent rush into the red, the index’s own fall (initially set off by the continued weakness of oil) exacerbated by a much worse than expected flash services PMI (coming in at 53.7 against the 55.9 forecast, and a downgraded 56.1 last month).’ He added: ‘This helped send the FTSE to further losses, doubling the losses seen for most of the morning, whilst the DAX really ramped up its decline, plunging nearly 200 points to wipe out much of the growth from the past 2 days.’ Next week investors can look forward to final third quarter US and UK GDP figures released on Tuesday and Wednesday respectively. Those figures should dictate the market movements in the run up to Christmas, though investors’ current commodity concerns may well continue to nip any nascent Santa rally in the bud. 12:00: The Footsie extended its falls at lunchtime as markets struggled for traction in the wake of the Federal Reserve move to hike US interest rates for the first time in nearly a decade, with US stocks seen opening weaker again today pressured by low oil prices. By mid session, the FTSE 100 Index was down 26.7 points, or 0.4 per cent at 6,075.8, after rising more than 40 points yesterday following Wednesday night’s decision by the Fed to call time on near-zero borrowing costs by raising its key interest rate by 0.25 per cent. European markets were also lower, with Germany’s Dax 30 index off 0.5 per cent, and France’s CAC 40 index down 0.9 per cent. Down: Markets struggled for traction in the wake of the Federal Reserve move to hike US interest rates for the first time in nearly a decade, with US stocks seen opening weaker again today pressured by low oil prices Wall Street looked set to continue yesterday’s downbeat trading later today, with investors carefully watching developments in commodity prices and a highly volatile session in Asia as markets struggled to interpret the latest round of surprise stimulus measures from the Bank of Japan. Alastair McCaig, Market Analyst at IG, said: ‘Blink and you’ll have missed it, as the US interest hike feel good factor looks to have already evaporated.

‘Historically, this has been the week in December when the benefits of the Santa rally can be enjoyed by equity investors. ‘Uncertainty and indecision created in the run up to Wednesday has seen the boost equity markets would have hoped for turn out as more of a whimper than a bang, and last night’s Chinese ‘Beige Book’ has only sped up this turn around.’ According to a private survey by China Beige Book International, fourth quarter national sales revenue, volumes, output, prices, profits, hiring, borrowing, and capital expenditure in the world’s second-largest economy were all weaker than the previous quarter. On currency markets, the pound edged up from an eight-month low against a weaker dollar to $1.4915 but was still on track for its worst week in seven, with investors seeing the Bank of England in no rush to follow the U. S. Federal Reserve with an interest rate rise. Against the euro, sterling was flat at €1.3769. The Fed move ended a year of uncertainty over US monetary policy, but saw the dollar rise in the previous session, knocking oil and metal prices lower and sending commodity stocks tumbling. Miners recovered some poise this morning, topping the FTSE 100 leader board with Anglo American up 5.1p to 268.7p, BHP Billiton 6p higher at 706p, and Rio Tinto ahead 2.5p at 1,861.5p as the copper price stabilised.

Analysts at broker UBS analysts said that the mining sector’s outlook remained challenging, with valuations not compelling. However, it sees value in some selective stocks, preferring miners with low costs and strong balance sheets, including Rio Tinto and Randgold Resources in the near term. On a quiet day for corporate news, Sports Direct International firmed 0.5p to 577.0p, after its board said founder and Newcastle United FC owner Mike Ashley will oversee a review of all agency worker terms and conditions at the company. The move follows criticism of the retail giant’s pay and employment practices, including the use of zero hours contracts, under which staff do not know how many hours they will work from one week to the next. 09.15: The Footsie stayed weak as the morning session progressed, tracking falls by US and Asian markets as the hangover from Wednesday’s historic US rate hike set in, pressured by low oil prices although a rally by mining stocks limited the declines in London as copper prices stabilised. Approaching mid morning, the FTSE 100 index was 7.8 points, or 0.1 per cent lower at 6,094.8, having closed 41.35 points higher yesterday as global markets digested the US Fed’s move to raise interest rates by 25 basis points, the first hike in almost ten years.

European markets were weaker, with Germany’s Dax 30 index down 0.9 per cent, and France’s CAC 40 index losing 0.7 per cent. Choppy week: After big falls at the start of the week, the FTSE 100 index has rallied to notch up gains of around 1.7 per cent so far for the five days after the Fed rate hike lifted lingering uncertainty Overnight US stocks retreated, snapping a three-session winning streak, hit by another decline in energy shares. US crude prices fell below $35 a barrel, while Goldman Sachs analysts released a note suggesting prices could be forced as low as $20. But Brent crude edged back above $37 a barrel this morning. On currency markets, in the absence of any UK or US economic data scheduled for release today, the pound just drifted higher against the dollar at $1.4919, as the US currency’s boost from the Fed rate hike was tempered. Sterling was also a touch higher versus the euro at €1.3799. A rally by heavyweight mining stocks limited the declines for the FTSE 100 index after metal prices stabilised as the dollar’s strength waned slightly, with Anglo American adding 3.7 per cent, or 9.7p at 273.2p, BHP Billiton ahead 12.2p at 712.2p, and Rio Tinto up 16p at 1,875p. Brenda Kelly, Head Analyst at London Capital Group, said: ‘A squeeze higher in the mining sector falling the additional falls yesterday is preventing a complete sea of red on the FTSE this morning as we see a mild bounce in copper prices.

‘The $2/lb level seems to be providing a floor for the base metal for the time being but the trend and indeed the outlook for copper prices is not all that positive. ‘China’s Beige Book allegedly shows deteriorating economic conditions and given that it is the world’s largest consumer of copper, any further growth concerns will likely be a driver for further falls in the metal.’ Precious metals miner Fresnillo was also higher, gaining 6p at 660.5p as the gold price recovered from recent falls. Cruises operator Carnival was the worst blue chip performer, however, down 2.2 per cent or 78p to 3.476p ahead of the release of its full year results, due at 3pm today. Sports Direct shares slipped 1.0p lower to 575.5p after the under pressure retailer said founder Mike Ashley will personally oversee a review of all agency worker terms and conditions in order to ensure its employees and casual staff work in good conditions.

The review comes in the wake of serious questions raised about the conditions faced by the company’s workforce. Last week, the Guardian newspaper reported that workers at the company’s Shirebrook warehouse were effectively paid under the minimum wage because of the conditions there.

Ashley, who is deputy chairman and owns a 55 per cent stake in the retailer, is expected to begin that review in the New Year, Sports Direct said. On the second line, Bodycote was the top FTSE 250 gainer, adding 5.2 per cent, or 29.0p to 568.5p after broker N+1 Singer upgraded its rating for the engineering group to buy from hold. Meanwhile, Restaurant Group added 18.0p at 673.5p after UBS initiated coverage on the stock with a buy rating. But specialty chemicals firm Victrex was a mid cap faller, down 18p to 1,777p after Barclays downgraded its stance to equal weight from overweight.

Among the small caps, WH Ireland dropped 12 per cent or 12.0p to 88.5p after it said it is likely to be hit with a ‘substantial’ fine by City regulators over its control procedures. The Financial Conduct Authority began its investigation into the wealth manager and corporate broker in April 2014. 08:25: The Footsie was negative in early trade, tracking overnight losses on US and Asian markets as the hangover from Wednesday’s historic US rate hike set in, pressured by weak oil price and plans by the Bank of Japan to expand parts of its already massive stimulus program.

In opening deals, the FTSE 100 index was down 6.6 points, or 0.1 per cent at 6,096.0, having closed 41.35 points higher yesterday as global markets digested the US Fed’s move to raise interest rates by 25 basis points, the first hike in almost ten years. Overnight in New York, US stocks retreated, snapping a three-session winning streak, hit by another decline in energy shares.

Crude oil prices fell below $35 a barrel, while Goldman Sachs analysts released a note suggesting prices could be forced as low as $20. Asian stocks slumped today after the Bank of Japan set out a new plan to buy exchange-traded funds, demonstrating the divergence taking hold between US and other countries’ monetary policies. The Nikkei dropped 1.9 per cent, while the Hang Seng in Hong Kong closed down 0.1 per cent. In the red: Asia shares finished lower overnight after the Bank of Japan decided to buy government bonds with longer maturities and equities worth an extra ¥300billion a year Sentiment wasn’t helped by latest data from the US manufacturing sector which pointed to a renewed contraction after the Philadelphia Fed manufacturing survey for December came in negative. The poor data left investors wondering whether or not the underlying health of the US economy was strong enough to handle future interest rate rises by the Fed. Mic Mills, Head of Client Services at Capital Index, said: ‘What goes up has to come down and so it was with US stock markets last night as fears of the Global slowdown returned, the dollar hitting highs and oil still finding lows not seen since 2004, caused the end of the 3 day rally. ‘Asian markets followed suit overnight and not even the BOJ increasing stimulus could help the Nikkei which ended the week down 1.3 per cent. China’s Beige Book confirmed that the economy has weakened in all aspects.

‘ In what is shaping up to be a very quiet end to a busy week, the main focus takes place in the US where flash PMI Services data will be released along with the Baker Hughes US Rig for for investors looking for further clues into the direction of the oil price. Stocks in focus include: SPORTS DIRECT: Boss Mike Ashley is to oversee a review of all agency worker terms and conditions at the company after criticism of their treatment, the company’s board has announced. STANDARD CHARTERED – Shares have been upgraded by broker CLSA on expectations the UK bank’s ‘challenging’ recovery could lead to a takeover by a white knight. BARCLAYS – Singapore’s DBS Group Holdings and Julius Baer are seen as potential bidders for its Asian private wealth business, valued at about $600million.

SABMILLER – ABInBev plans to contact potential bidders for SABMiller’s Grolsch and Peroni beers and wrap up deals in less than three months. UK company news scheduled today includes: Trading update: Berendsen, Trinity Mirror Finals: Carnival, Jersey Electric Interims: Goodwin Economic news scheduled today includes: EU current account at 10am US Markit Services PMI at 2.45pm Kansas Fed manufacturing activity at 4pm View all The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. DON’T MISS ‘I’m Wonka-in-Chief’: James Middleton reveals all on struggle to be taken seriously as a businessman Takes us on marshmallow factory tour Essential money news on the move: This is Money’s new super-fast, FREE, iPhone app Warning: it’s addictive Merry Christmas – you won’t have to pay for 21 years worth of gas TONY HETHERINGTON on the case MIDAS SHARE TIPS Kuwaiti royals build profits with Sigma Capital Group Where to buy the best-value turkey: We compare frozen, fresh and top-of-the-range birds Prices across the UK’s big shops What diesel emissions scandal? We drive VW’s new super-efficient PETROL Golf Is it as economical as the figures say… My Christmas shopping was stolen from the boot of my car. I was not covered for anything over the value of £50 to replace the presents.

That’s what we call a Christmas delivery Ferrari rewards dealer with an F1 car but bedlam ensues getting it into the showroom The great white van rush Delivery firms up by a third as they move millions of parcels in the online shopping explosion Good times roll as Accessorize picks up on Rollasole The shoes that fit in your handbag and have been worn by the stars Your 15 best responses to get rid of cold callers for good Don’t get mad, get even Do you live in one of the 50 best places in the UK? A tranquil corner of Hampshire tops the list for an impressive fifth year in a row… How to bag the new home you want: The homebuyer’s guide to getting a mortgage What you need to know Sponsored HOT TOPICS AND PREDICTIONS What next for interest rates? Forward guidance has been rejigged but when will base rate rise? What next for mortgage rates? Should you fix or track? And which are the best deals?

What next for house prices? The property market is on the up fuelled by cheap mortgages and taxpayer help

banner