Trades and observations from a British contrarian stock investor

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Wednesday, May 5, 2010

More stock market falls as euro zone worries persist

The FTSE 100 is currently down 50 points to 5,349 and Dow Industrials futures are down 60 points at 10,872 as continuing worries over the health of the euro zone dominate. Investors are concerned that Greece's problems may extend to Spain and Portugal. A national strike in Greece has also not helped sentiment with riots breaking out and flights grounded out of Athens during the afternoon.

The U.S. April ADP employment report also came in slightly light of expectations which has not helped sentiment.

Prudential (PRU) fell 2% to £5.48 as it announced a delay in a rights issue to fund the buy out of  AIG's Asia unit AIA in a $35.5 billion acquisition as the FSA questioned the capital adequacy of the combined company.

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