this happened to asnd..
asnd had nothing to do with it
** UK's FTSE 100 retreats as Dow dives after comments from
Federal Reserve chairman Alan Greenspan.
** Greenspan says labour market performance suggests economy
on "unsustainable" track, says unrealistic to expect
continuation of recent stock market gains.Dow off 70 pts.
In prepared testimony to U.S. legislators, Greenspan said
the performance of the U.S. labour market suggested the economy
was on an unsustainable track, adding that a continuation of
recent stock market gains was "clearly unrealistic."
UK markets were taken by surprise by the comments, but were
quick to point out that previous bearish remarks from Greenspan
had had little lasting impact on the recent bull run in shares
on both sides of the Atlantic.
"I don't know who's going to win out, but he is certainly
dropping some heavy duty stuff," said one dealer here.
Analysts also pointed out that it could be part of the role
of a central banker to temper market over-enthusiasm.
"It's slightly odd but you have to remember that it is a
central banker's job to stop market's getting too carried away,"
said HSBC James Capel equity strategist Robert Buckland.
"The market's had a good strong run and a bit of
consolidation would not be so much of a bad thing," he said.
"He made the 'irrational exuberance' speech in December
1996, then he was almost embracing with the new paradigm of
growth with low inflation in his Humphrey Hawkins testimony and
here he is cautioning again," said Buckland.
Others pointed out that European equity markets could take
their lead from the dollar, since strength in the U.S. economy
was positive for the profit prospects of companies with major
business in the United States.
"It's a bit surprising that Greenspan raised some of these
big questions and it will be crucial to see what happens to the
dollar," said one strategist.
By 1427 GMT the FTSE 100 was down 14.7 points at 5,290.9.
The December futures contract was down 49 points at 5,338.
-- London Newsroom +44 17 1542 4367 |
