There was some much-needed respite yesterday for London's equity market. Under persistent pressure throughout the morning and early afternoon, the FTSE 100, the market's benchmark index, stabilised and then embarked on a good rally to finish modestly higher as Wall Street kicked off on a positive note. At the close, Footsie showed a 26.7 gain at 6,226.21, halting a run of five consecutive falls.
The FTSE 250 closed down 28.6 at 5,639.1, while the FTSE SmallCap lost five to close at 2,546.7.
Wall Street's firm opening, which saw the Dow Jones Industrial Average up over three figures just ahead of London's close, came in response to the latest Chicago purchasing managers' index which was below market expectations, and seen as slightly reducing the chances of the US Federal Reserve moving interest rates higher next month.
At its worst Footsie was down almost 90 points, with the US interest rate story still casting a shadow. Political news also affected sentiment, notably the threat of the introduction of Nato ground troops in the Kosovo crisis, plus the potential for an escalation of the clashes between Indian and Pakistani military forces in Kashmir.
The FTSE 100 registered the worst performance of the main indices over the week, losing 126.9, or 2 per cent. The 250 gave up 78.9, or 1.4 per cent. But the SmallCap managed to resist the downside pressure, registering a 14.46, or 0.5 per cent rise.
