The FTSE ended the week at 5,529.90 taking the fall for the first half of the year to 14.4%, the worst performance of the index since 1994 when it fell 14.6%. The continued sell-off of stocks came as oil hit $142.69 a barrel, news which reverberated around world markets. Analysts had initially predicted a poor start to the year, but with better prospects for the second half of 2008, however this optimism is waning and so it could be a bumpy ride all the way in to 2009.

The FTSE fell 104 points (1.78%) to end the day at 5,723.30 amid fears that the UK economy is heading for even tougher times. Leading the charge south were the banking stocks with HBOS closing 11.64% lower at 258p. This leaves the share price lower than existing investors have been offered shares as part of the £4bn rights issue. Royal Bank of Scotland was also hit, falling 9% to close at 212.25p. (more…)

The FTSE 100 closed the week at 5,962.90, down slightly on the day by 24.6 points. Persimmon, the only housebuilder in the FTSE 100 was the biggest casualty, closing 40 points lower at 749.5p. (more…)

The FTSE 100 ended the week below the psychological 5,500 level at 5,495.2, down 50.4 points on Friday, although this was above the early afternoon lows.

Falls in crude and gold prices meant that the oil and mining stocks lead the charge downwards. In the oil sector, Cairn Energy slipped 178p to 2,535p and BP was off 15.5p at 496p. As for the miners, share prices for all the big players fell. Anglo American was down 236p to 2,673p, Vedanta was down 108p to 1,902p, Rio Tinto was down 270p to 4,800p and BHP Billiton ended 80p lower at 1,361p. (more…)

The US Federal Reserve has cut interest rates by a further 0.75% from 3% to 2.25% as it aims to counter the credit crunch and its knock on effect to the markets. The move comes after the news that Bear Stearns was in trouble and a swift takeover deal was put in place with JP Morgan Chase as suitor. Some commentators are suggesting that the US is already in recession and the interest rate cut should have been 1% rather than the 0.75% delivered.

However the US Markets have reacted positively to the news and the Dow is currently up over 300 points. The anticipated cut also gave renewed cheer to the FTSE which ended the day up over 190 points and reversed much of yesterdays losses.

Undoubtedly there is still more troubled times ahead and the markets are currently places for the brave investor, but let’s enjoy the good news while we can.

The FTSE 100 closed on Friday at 5,631.7, down 60.7 points (1.1%) amid news the US’s fifth largest bank, Bear Stearns, was in trouble and had sought emergency funding from the Federal Reserve.  Unlike with the Northern Rock debacle the Americans have acted fast to try and stop a major bank collapsing. However, the funding to prop up Bear Stearns is only for an initial period of 28 days.

Not surprisingly the UK Banks bore the brunt of the losses with Royal Bank of Scotland (RBS) falling 8.5 points (2.48%) to 333.75p and Barclays (BARC.L) falling 17.75p (3.94%) to 433p. The biggest loser was HBOS (HBOS.L) , tumbling a significant 34p (6.05%) to 528p. Although this is also due to speculation of further writedowns at the Bank.

The FTSE 250 reflected the fortunes of the FTSE 100, losing 1% to 9,706.1.

The FTSE 100 ended Friday 66.50 points down (1.15%) at 5699.90, taking the index to its lowest level in six weeks, largely thanks to more bad news from the other side of the pond.

Fears of a recession in the US grow as the impact of the credit crunch deepens. Employers cut 63,000 jobs, the highest level for nearly five years, and the Federal Bank didn’t deliver an anticipated emergency interest rate cut to help alleviate the pain. Although it has injected $100 billion of emergency financing into the system.

The news hit our mining stocks the hardest with BHP Billiton down 90p (5.36%) to 1590p, Antofagasta down 43.5p (5.2%) to 786.5p and Vedanta Resources down 111p (4.69%) to 2256p.

JD Wetherspoon was another notable faller off nearly 17% to 260p but that was a result of the smoking ban rather than anything going on in the US.

The FTSE 250, FTSE All-Share and FTSE Aim indices all followed suit ending the day down by 1.15%, 1.20% and 0.86% respectively.