US rate cut fails to boost markets
- 00:02:16
- ITN
US rate cut fails to boost markets
The interest rate cut by the US Federal Reserve has failed to shift sentiment seeing a plunge on Wall Street.A few minutes after opening, the Dow Jones Industrial Average was almost 450 points down, but has recovered slightly.The US government confirmed earlier speculation by cutting interest rates by 0.75 per cent, but this gave only a temporary reprieve before stocks dipped back into the red, strenghtening fears of a US recession.In London, Prime Minister Gordon Brown sought to restore confidence in London's financial markets after a market nose dive on Monday saw £77 billion wiped off the value of FTSE 100 stocks.A spokesman for the Prime Minister said: "Britain remains well-placed to withstand this uncertainty in the global economy, but of course we have to remain vigilant and that is why we will take whatever action is necessary to maintain stability."As the US opened the FTSE was 35 points higher at 5615 - after the blue-chip index dropped by as much as 239 points in the first few minutes of trading after heavy overnight falls across Asian stock exchanges.A raft of heavyweight sectors dragged the FTSE down prior to the rate cut, with miners extending the heavy losses seen yesterday.The leading FTSE faller was telecoms firm BT Group, amid concerns from Collins Stewart that the wider market tumble could send its pension scheme into deficit.Pharmaceutical stocks were also seeing declines after a downgrade for AstraZeneca from Citigroup.Meanwhile, a rebound among banks put Lloyds TSB and Halifax Bank of Scotland near the top of the risers board.Housebuilders, which have been hit hard amid fears over property prices and the impact of the credit crunch, also saw a rally.© Independent Television News Limited 2008. All rights reserved.
ITN | January 22, 2008
