Recession fears drag FTSE down

By MoneyhighStreet Staff. Published on October 15, 2008 This post currently has no comments.

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The FTSE 100 fell again today, after strong gains earlier in the week.

Increasing investor concerns over the worsening economic outlook meant that the index closed 311.17 points, or 7.08 per cent down at 4083.04 points.

Miners were hit hard, with the GDP slowdown likely to lead to less demand for commodities.

In particular, analysts have suggested that China might face a more severe economic downturn than previously thought.

Kazakhmys was down 22.27 per cent on the day, while Eurasian was the biggest faller, down 24.78 per cent.

Speaking to the Associated Press, Dariusz Kowalczyk, chief investment strategist for CFC Seymour, said: "We had a huge rally on Monday and Tuesday, so there has to be some profit-taking."

He added: "There''s also more clarity about damage to the economy, and investors are likely to conclude that the rally at the beginning of the week overstates the potential for earnings."