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FTSE Stumbles After Clinton Pneumonia Scare
The FTSE 100 Index rose 32.3 to 6698, after a slight fall in United Kingdom unemployment to 1.63 million between May and July showing there is no current “Brexit effect” on the jobs market.
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World markets largely fell on Monday over speculations about an imminent rate hike in September by the US Federal Reserve.
The FTSE 100 Index lifted 18.1 points to 6719, after falling by more than 100 points on Monday when traders were spooked by the prospects of a USA rate rise later this year.
Jane Foley, a senior FX strategist at Rabobank, said the scare may have spooked investors who are concerned about the economic uncertainties which are likely to hit the markets should Mrs Clinton’s rival, Republican Donald Trump, win the presidency.
At one point all 100 companies listed were trading in negative territory.
The alarm was raised after Mrs Clinton unexpectedly left a 9/11 ceremony in NY on Sunday, and was seen stumbling into her vehicle.
Across Europe, Germany’s Dax closed 0.1% lower while the French Cac 40 dropped 0.4%.
Declines in energy and financial stocks sapped a stock market recovery after a Federal Reserve official soothed fears of a rise in U.S. interest rates next week.
United Kingdom stocks were also dragged down by Associated British Foods (ABF), which said that like-for-like sales at Primark are expected to fall by two per cent over the year as warm pre-Christmas weather and a “very cold” March and April dampened its performance.
On the UK’s second-tier stock index, Dunelm shares closed lower by 23p to 892.5p, despite reporting a 6.2% rise in full-year pre-tax profits to £128.9 million, and pledging to press ahead with expansion plans regardless of Brexit.
Shares in retailer Marks & Spencer also took a dive, dropping 17.4p to 326.2p after announcing its high-flying executive Laura Wade-Gery will not return to work from maternity leave.
Banking shares including Lloyds, RBS and Standard Chartered were among the worst performers on the FTSE 100.
The biggest fallers in the FTSE 100 Index were EasyJet (-44p to 1090p), Taylor Wimpey (-2.7p to 150.6p), Burberry Group (-19p to 1255p), International Airlines Group (-5.6p to 414.1p) and Dixons Carphone (-4.7p to 367.8p).
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The biggest gainers on the FTSE 100 included Anglo American up 19.8p to 803.6p, Glencore up 4.4p to 181.45p, RSA Insurance up 11.1p to 509p, and Hikma Pharmaceuticals up 42p to 2141p.