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Article: Investors Mind the Gap as Faithful Footsie Shadows the Dow.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- May 9, 2001
CopyrightCOPYRIGHT 2001 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Angus McCrone, Evening Standard, London Knight Ridder/Tribune Business News
May 9--Anyone who harbours illusions about the importance of the British economy in the world today cannot have seen the FTSE 100 index jump or dive in servile obedience to the latest change of direction on Wall Street.
When New York's Dow Jones Industrial Average chokes on an economic figure or a profit warning, the Footsie in London chokes too. When the Dow charges ahead on news of a US interest rate cut, the Footsie follows.
However, the relationship between the two is not precise. In recent weeks, the points differential (in other words, the gap) between the ...