Investors reeling over losses in US


The FTSE-100 Index was down 50.

6 points yesterday (Tuesday) as London investors were sent reeling by further losses overnight in the US and the Far East.

By 9am, the Footsie was wobbling at 5776.1 after rallying from an earlier low point of 5746.8 and threatened to hit its lowest point for two years.

Economists were predicting the market could fall significantly lower, even below the 5700 barrier.

Swedish mobile phone giant Ericsson was the latest technology stock to add to the negative sentiment, when it issued a warning in the US that profits in the first quarter would be lower.

This added to the bear run on the tech-dominated Nasdaq, which was pushed to its lowest close since December 1998, down 6.3 per cent at 1923.38.

The fall hit the Dow Jones Industrial Average, which plummeted 436.37 points to 10,208.25.

Blue-chip stocks in the UK followed suit, with tech-stocks leading the way. At 9am, only 11 of the top 100 blue-chip companies were on the up.

Software groups Misys and Sage were down 241/2p and 12p at 5551/2p and 2843/4p respectively, while computer services group Logica was off 49p at 13.50.

Biotech group Celltech was also caught up in the negative sentiment, diving 5 per cent, a drop of 69p.