Slide in equity markets halted on guarded comments by Greenspan
He indicated that although he expected more “previously undisclosed misdeeds,” in an allusion to the recent rash of corporate fraud scandals, he would hold off from imposing an interest hike. In London, the FTSE rallied initially before plunging to a new six-year low of 3,860 and recovering on an upswing from the Nasdaq to close 27 points higher at 4,022. Pharmaceutical company GlaxoSmithKline shed 2.4% on the news that its flagship drug Augmentin was under threat from a new generic version.
Telecoms registered some gains, mostly due to a significant rise for mobile phone operator Vodafone, which closed 6.1% at 91.5p. Incumbent BT Group rose 5% to £2.33. Energy distribution group Centrica, which has seen its shares hard hit in recent sessions amid question marks over its accounting, said it was confident it will continue to meet market expectations. It said that its accounting policies were “entirely appropriate” despite market speculation. Centrica said it had no plans to issue any shares for cash. The shares initially rose 3.7%, but quickly turned lower to close 3.4% lower at 1.55. American markets were unsteady and reacted moment-by-moment during Mr Greenspan’s twice-yearly speech to the Senate’s Banking Committee.
