Hawkish comments on rates see FTSE slide; FTSE 100.
Byline: matthew worton Brewin Dolphin
THE FTSE 100 Index was driven 0.5% lower yesterday following hawkish sentiment from Dennis Lockhart, President of the Federal Reserve of Atlanta.
Mr Lockhart suggested that a September interest rate hike was looking increasingly likely, whilst also indicating that "we could have two rate increases this year".
As interest rates increase, equity markets tend to respond negatively, and this effect can also be seen in US Markets where the S&P 500 has fallen 0.41%.
Shares in car insurance group Admiral sank 7.7% to close at 2081p yesterday following mixed first-half results.
In spite of a 4% increase in profits and a 23% rise in dividends, Admiral suffered a significant fall in its solvency ratio, which dropped from 206% to 180%. The solvency ratio represents an insurer's ability to meet all outstanding insurable risks. In Admiral's case, the volatility caused by the Brexit vote has had a negative impact on the group's ability to manage these liabilities.
In the FTSE 250 Index, shares in pharmaceutical group and Reckitt Benckiser spin-off Indivior led the pack, closing 8.8% higher at 327.25p after the company released positive interim results.
The results indicated positive Phase 3 testing data for Indivior's flagship opioid painkiller Buprenorphine, for which the company expects to gain regulatory approval in the final quarter of 2017.
In the Journal North 40 Index, shares in LSL Property Services rose 2.11% to close at 205p whilst shares in bakery chain Greggs fell 1.53% to close at 1027.5p.
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|Publication:||The Journal (Newcastle, England)|
|Date:||Aug 18, 2016|
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