End of recession fails to impress markets

FTSE 100 falls in early trading for fifth straight session despite UK officially coming out of recession
FTSE 100 falls in early trading for fifth straight session despite UK officially coming out of recession
 

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Tuesday, 26, Jan 2010 10:18

By Matthew Champion.

The FTSE 100 fell in early trading on Tuesday, despite Britain appearing to emerge from its worst recession since the end of the second world war.

By 09:55 GMT the index was 26.77 points down (0.51 per cent) to 5,233.54.

Official estimates from the Office for National Statistics released earlier today showed the UK economy grew by 0.1 per cent in the final quarter of 2009.

But ONS economists cautioned that the provisional figures were subject to revisions of between 0.1 and 0.2 percentage points, while analysts had expected fourth quarter growth of 0.4 per cent.

Having a much more significant impact upon the FTSE was continued anxiety over the White House's planned banking reforms and an expected drive by banks in China to increased their reserves, sparking a sell-off of Asian shares and forcing mining stocks down.

Fresnillo led the losses at 1.96 per cent down, with Kazakhmys, BHP Billiton, Lonmin, Rio Tinto and Antofagasta all slipping between 1.34 per cent and 1.69 per cent.

This morning's losses mean the FTSE has extended its downward streak for a fifth straight session, something not seen since February last year.


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