LONDON MARKETS: FTSE 100 Slides As BOJ Shock Ripples Through Markets
April 28 2016 - 3:33AM
Dow Jones News
By Carla Mozee, MarketWatch
Lloyds shares fall sharply after its profit plunges
U.K. stocks dropped Thursday, tracking declines in Asia markets
after the Bank of Japan's surprise decision not to launch more
stimulus for the world's third-largest economy.
The blue-chip FTSE 100 index fell 0.7% to 6,278.20, in line for
its first loss in three sessions. The benchmark on Wednesday rose
0.6%
(http://www.marketwatch.com/story/ftse-100-sags-as-banks-miners-lose-ground-2016-04-27),
helped by rising oil prices.
U.K. and other European equity markets were hit Thursday after
Bank of Japan Governor Haruhiko Kuroda's "decision to keep interest
rates on hold and stimulus measures unchanged dashed market
expectations," said Tobias Davis, U.K. currency strategist at
Western Union Business Solutions, in a note.
"Policy makers look to be taking more time to assess the impact
of negative interest rates and now anticipate the inflation target
of 2% will be reached during fiscal 2017," he added.
The Nikkei 225 index closed 3.6% lower and the yen surged
against the dollar
(http://www.marketwatch.com/story/yen-rips-higher-against-dollar-after-boj-shocks-market-with-no-action-2016-04-28)
after the surprise move by Japan's central bank.
Late Wednesday, the U.S. Federal Reserve kept interest rates
unchanged
(http://www.marketwatch.com/story/fed-stands-pat-and-is-silent-about-future-of-interest-rates-2016-04-27)
and gave little clue on the timing of its next rate hike, but it
toned down its concerns about the global economy.
Stock movers: Among the worst performances came from Lloyd's
Banking Group PLC (LLOY.LN) (LLOY.LN) shares, down 4.2%. The bank
said Thursday its first-quarter net profit fell 44% to GBP531
million ($773.72 million), hurt by restructuring charges
(http://www.marketwatch.com/story/lloyds-profit-down-44-on-restructuring-charges-2016-04-28)
and the cost of buying back high interest paying bonds.
(http://www.marketwatch.com/story/lloyds-profit-down-44-on-restructuring-charges-2016-04-28)WPP
PLC (WPP.LN) shares were off 1.2%, even as the advertising giant
posted an 11% rise in first-quarter revenue.
(http://www.marketwatch.com/story/wpp-revenue-up-11-on-growth-in-key-markets-2016-04-28)
Meanwhile, shares of Berkeley Group Holdings PLC (BKG.LN) fell
3.8% after Credit Suisse reportedly downgraded the home builder's
rating to underperform.
Among gainers in the U.K., Anglo American PLC (AAL.LN) shares
were up 3% after the metals producer agreed to sell some assets in
Brazil
(http://www.marketwatch.com/story/anglo-american-to-sell-brazilian-units-2016-04-28)
for $1.5 billion.
(END) Dow Jones Newswires
April 28, 2016 04:18 ET (08:18 GMT)
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