FTSE feels Wall Street effect

London’s FTSE 100 Index hovered close to the 6500 mark today after Wall Street’s Dow Jones Industrial Average set a new high last night.

The latest rally for US investors came as the Vix index, which is considered a key measure of volatility, hit a six-year low yesterday in the wake of encouraging unemployment figures last Friday.

The Dow Jones Industrial Average finished 50 points higher at 14447 last night, while the FTSE 100 Index was close to its opening mark – down 4.8 points at 6498.8 – after setting a new five-year high on Monday.

Ten years ago, the benchmark closed at 3287 – its lowest point since June 1995 - as investors fretted about the prospect of war in Iraq.

Banking stocks have suffered a tumultuous decade since then but Lloyds Banking Group was higher today after it completed the placing of a 20% stake in wealth manager St James’s Place.

The move will raise £400 million and should allay any lingering fears over its capital position. Shares were 0.8p higher at 50.8p but St James’s Place dropped back from a recent record high following the placing at 510p a share.

The FTSE 250 Index company, which was set up in 1991, fell 11.5p to 525p.