Headline shares ended the session with heavy losses, as investors fretted over new EU hedge fund regulation and Germany's ban on shorting, and as a strengthening dollar hit metals prices. At the close of business, the FTSE100 was down 149.26 points at 5,158.08 with the FTSE250 off 322.62 points at 9,670.62 and the FTSE Smallcaps 39.59 points lower at 2,805.48. US stocks followed Europe lower in late morning trade as investors studied Germany's move to ban naked short selling of some financial instruments. Approaching the close in London, the Dow Jones Industrial Average was down 146 points at 10,365, the S&P500 fell 14 points at 1,106 and the Nasdaq Composite shed 35 points at 2,283.
LONDON MARKETS
Equity markets in London experienced sharp falls from the opening bell today, investor sentiment dented by Germany's ban on naked short-selling certain financial instruments and EU moves to regulate the hedge fund industry. Coupled with this, a strengthening US dollar impacted commodity prices, sending miners and oil producers lower.
Pharmaceutical giant Glaxosmithkline (LON:GSK) was the sole gainer on the main index today, up a modest 4.5p at 1,177.5p. Mining stocks provided the bulk of the big fallers today, hit by an easing in metals prices on the back of a rise in the dollar. Xstrata Plc (LON:XTA) was the sector's worst performer, off 75.8p at 933.7p, while Rio Tinto (LON:RIO) slid 213.5p at 2,984.5p and Kazakhmys (LON:KAZ) lost 82p at 1,138p. Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) slumped 315p at 5,735p and 34p at 841.5p, respectively, as gold slipped to $1,195 an ounce. Similarly, oil producers were hit by crude remaining under $70 a barrel, with Shell off 41.5p at 1,760.5p, BG Group (LON:BG.) down 25.5p at 1,020.5p and BP (LON:BP.) 10.5p lower at 523.5p.
In the financial sphere, interdealer broker ICAP (LON:IAP) was a major casualty, down 16.5p at 373.1p, after reporting a drop in annual profit. Hedge fund manager Man Group (LON:EMG) was under pressure as a result of EU regulation concerns, losing 5p at 215.3p. Fellow fund manager Schroders (LON:SDR) dropped 44p at 1,339p and private equity group 3i (LON:III) lost 6.1p at 277.4p. Barclays (LON:BARC) was the runt of the banking litter, off 15.65p at 290.2p, while Lloyds fell 1.83p at 56.32p and Royal Bank Of Scotland Group Plc (LON:RBS) eased…
