The stock market in London tumbled on Thursday after deadly blasts on London’s transport network which British Prime Minister Tony Blair said were the work of terrorists.
Police reported at least 33 people dead and hundreds injured in four separate explosions on underground trains and a bus, while Blair returned to London early from the Group of Eight summit of rich nations’ leaders in Scotland.
A top French official said that between 45 and 50 people were killed and about 1Â 000 injured.
London’s FTSE 100 index of leading shares closed down 1,38% to 5Â 158,30 points after falling more than 3% in the immediate aftermath of the morning explosions.
Sterling slid to a low point of $1,7404 after news of the incident. The British pound stood at $1,7424 dollars in late European trading.
“It is causing a sense of unease,” said Jeremy Batstone, stock-market analyst at Charles Stanley.
Shares in the travel and tourism sectors were among the biggest fallers, with hotel group Hilton slumping 3,27% to 288,25 pence, cruise-ship operator Carnival sinking 2,2% to 3,159 pence and British Airways diving 4,22% to 260,75 pence.
The slide contrasted with the trend a day before when the FTSE rose to fresh three-year high points on London being awarded the summer Olympics in 2012.
Meanwhile, the Bank of England announced that it has left its key interest rate unchanged at 4,75% for the 11th month in a row, despite speculation that the explosions would lead to a cut.
The decision had been widely forecast by economists who, however, expect a rate cut in August amid growing evidence of a slowdown in the British economy.
Investors were keeping a close eye on volatile oil prices, which soared to record high points above $62 per barrel in Thursday trading, before retreating sharply. — AFP