It looks like the markets in 2008 are going to be as volatile as last year, if today is anything to go by. A calm start was soon forgotten after the release this afternoon of poor US manufacturing figures, topped off with gold and oil soaring to new records, and the dollar tumbling.
Oh yes, and to add some more spice, a surge in Alliance & Leicester's share price after reports of takeover interest from Spain's Santander. A&L finished more than 16% higher at 754p as investors decided the bank was in play, whether or not anything comes of Santander's reported interest.
But overall, the negatives outweighed the positives, and with the Dow Jones Industrial Average down 175 points, the FTSE 100 closed 40.2 points lower at 6416.7. At its peak today the index had reached 6512.3.
Among the fallers were Cairn Energy, down 123p to £29.51 after Oriel Securities downgraded its recommendation from add to hold, and Xstrata. The mining group fell 85p to £34.65 on news of an armed raid on its Tampakan site in the southern Philippines.
Retailer Woolworths lost 0.25p to 12.75p as Credit Suisse slashed its price target from 23p to 11.5p, but Next finished 42p higher at £16.66 ahead of a trading statement tomorrow.
