UK stock market tumbles
The UK stock market has fallen under the psychological 4000 barrier today after a raft of rumours and downbeat statements from the property and mining sectors. It appears as though a number of companies are set to come to the market for extra funding from shareholders and there is some concern that this money may not be forthcoming. When you also add in concerns regarding the UK banking sector, the UK stock market is set for a very difficult time over the next few weeks.
Confidence is slowly ebbing away from investors in the UK and the recent announcement of a move to quantitative easing has not helped the situation. The mining sector, once one of the strongest sectors in the market, has suffered a serious setback of late with many mining companies under pressure after commodity price falls and in need of additional funds to get by. There are also concerns that Citigroup and Bank of America are set to be nationalised by the US government which will be seen as a further nail in the coffin of the US banking sector.
The last few months has seen the demise of a string of well-known financial names, names which go back hundreds of years and form the cornerstone of the worldwide financial market - or they used to!
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