FTSE 100 falls on economy fears
Monday, 01 Sep 2008 10:41
Economy fears drive FTSE 100 down
The FTSE 100 fell 42.5 points to 5,594.10 by 09:30 BST following comments over the weekend from chancellor Alistair Darling about the economy.
The finance minister told the Guardian on Saturday the UK economy is in its worst shape in 60 years, prompting a fall in retail and service sector stocks.
Pub group Enterprise Inns was down 4.12 per cent to £2.91 per share, while Marks and Spencer fell 2.29 per cent.
The gloomy forecast also hit banking stocks. Barclays was down 1.2 per cent to 348.25p, while HBOS fell 0.32 per cent to 314.75p.
Weaker metals prices also hit mining stocks, with Kazakhmys down 3.33 per cent to £12.49 and BHP Billiton down 2.5 per cent to £16.75.
The mass evacuation of staff from US oil interests in the Mexican Gulf has had an impact on output, sending up prices.
US light crude for October delivery rose $1.54 to $117 a barrel by 08:14 BST.
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