FTSE falls as Federal Reserve tapering continues; FTSE 100.
THE FTSE 100 Index fell for the seventh session out of eight after the US Federal Reserve Bank continued tapering its Quantitative Easing programme.
On top of that, there was disappointing economic data out of China. The US Federal Reserve said it would cut back on its monthly bond purchases by a further $10bn despite signs of recent stress in the Emerging Markets.
Meanwhile, China's manufacturing activity fell further than was expected in January, according to the HSBC Purchasing Managers' Index.
The FTSE 100 Index closed down 5.8 points at 6538.
The weakness of the Emerging Markets prompted yet another FTSE 100 constituent to fall as Diageo's share price closed down 90p to 1820p.
The consumption of spirits in China and a marked slowdown in Guinness sales were the major negatives of the half year results.
Sales in Asia Pacific slumped by 10%, including a 13% decline in South East Asia and a 22% fall in China blamed on the unrest in Thailand and Chinese anti-extravagance measures.
Beer, which accounts for a fifth of total sales, was another weak spot with sales 3% lower.
Sales in Nigeria fell 10% while sales of Guinness in Ireland declined by 6%.
BSKYB topped the FTSE 100 leader board after its shares rose 33.5p to 878p. Despite a fall in underlying profits, the first-half results were well received as revenues grew.
It was a quiet day for news and announcements from the Journal North 40 Index.
However, Tanfield Group, the electric vehicle specialists, saw its share price rise 1.1p, the equivalent of 7.8%, to 16.8p.
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|Publication:||The Journal (Newcastle, England)|
|Date:||Jan 31, 2014|
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