Further falls for FTSE?

Updated 13.01 Mon Jul 30 2007
Keywords: Nikkei, Dow Jones, Tokyo, FTSE 100

The FTSE 100 remains in negative territory following last week's credit fears which sent shockwaves through world markets.

By 12.45pm, the FTSE was down 15.7 at 6199.5. The top flight is now back where it started the year, having shed 5.6 per cent last week alone, and over 500 points in the space of a month.

The top flight is now back where it started the year, having shed 5.6 per cent last week alone, and over 500 points in the space of a month

In Tokyo, the Nikkei average finished almost flat on Monday after hitting its lowest level in nearly four months. It added 5.49 points to end at 17,289.30 after logging its lowest level since April 2.

In the US, concerns continue over the increasing default crisis in the sub-prime mortgage market. All eyes will be on the Dow Jones, which finished 208.10 points lower on Friday, at 13,265.47, down 4.2 per cent on the week.

Additionally, tougher borrowing conditions for corporate lending has threatened to undermine merger and acquisition activity.

A host of major private equity deals, including buyouts of US car manufacturer Chrysler and the US beverages business of Cadbury Schweppes, have been hit by the borrowing terms being demanded by lenders to finance the highly-leveraged deals.

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