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FTSE Dips Into Red After Firm Start

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FTSE Dips Into Red After Firm Start

por Figas » 3/7/2003 11:50

Reuters
FTSE Dips Into Red After Firm Start
Thursday July 3, 6:29 am ET


LONDON (Reuters) - Britain's FTSE 100 index turned lower after a firm start on Thursday morning, reacting to a fall in U.S. stock index futures, and oil shares fell the most on worries about the future direction of crude prices.
Oil majors BP and Shell both fell 1.5 percent, accounting for most of the fall in the FTSE 100 index, which was off 9.9 points to 3,997.0 by 1003 GMT.

Traders said the optimism behind the early gain to 4,031.4 points evaporated as U.S. futures turned lower and investors fretted over the potential damage from the later release of economic figures on U.S. markets, which will trade only half a day on Thursday and be closed for the July 4 Independence Day holiday.

"We've had a good quarter, and people are not willing to chase the market in the short term. We're waiting for more signs that things are starting to come right in the U.S. economy," said a trader.

Dealers also said the market was restrained by the looming release of U.S. employment data at 1230 GMT, which should provide a more concrete indication of recovery prospects for the brittle U.S. and global economy.

British American Tobacco fell 1.9 percent after saying it was reviewing its presence in Myanmar after the UK government asked it to withdraw from the country where pro-democracy leader Aung San Suu Kyi is being held.
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