UK market falls over US govt. shutdown

On Wednesday, the London Stock Exchange’s top 100 companies, as listed in the FTSE 100 index, fell as low as 6,386.18 points, its lowest pit since July.

The falls comes as investors creak over the continued partial shutdown of the US government and doubts emerge over whether US Democrats and Republicans can settle the problem with the debt ceiling that could lead into a sovereign default.

London-based commodities and financial broker, Sucden Financial analyst Kash Kamal said: “Any protracted government shutdown will have growing implications on the economic recovery and could see a pullback towards 6,350, a previous area of consolidation.”

Companies with strong ties to US assets have been hit the hardest. Britain’s biggest grocer, Tesco, also reported dismal quarterly sales in its home market with a intra-day dip to 4.6 percent and finishing at 0.9 percent down at close.

The UK Office for National Statistic reported on September 25, that more than half of the UK’s £1.76 trillion stock market is owned by overseas investors.

GVN/HE

Source Article from http://www.presstv.ir/detail/2013/10/03/327323/uk-market-recedes-over-us-govt-shutdown/

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