On Thursday stocks in the US fell, as investors reacted to the events in London with caution, leaving the Dow Jones Industrial Average off 0.6 per cent at 10,627.77 and the Nasdaq Composite down 0.5 per cent to 2,178.6.

European stocks were broadly lower yesterday, with technology stocks in focus after weak results from the US as Microsoft failed to meet its guidance and Google announced weak revenue growth. By midday, the FTSE Eurofirst 300 was down 0.4 per cent at 1,160. Frankfurt's Xetra Dax was off 0.2 per cent to 4,818.89, while the CAC-40 in Paris slipped 0.6 per cent to 4,400.3.

After some modest early gains, the FTSE went into reverse by the end of morning trade yesterday following reports of another major security scare. The FTSE 100 fell 0.3 per cent to 5,204.6 while the mid-cap FTSE 250 traded 0.2 per cent stronger at 7,483.6.

Japanese stocks declined yesterday, in response to China's revaluation of the renminbi. The Nikkei 225 closed down 0.8 per cent to 11,695.05, while the Topix fell 0.7 per cent to 1,186.76. The revaluation sent the yen up sharply against the dollar during US trading, depressing exporters' share prices.

Carmakers declined sharply. Toyota, Japan's biggest automaker, fell 0.95 per cent to Y4,190 while Nissan fell 1.5 per cent to Y1,145. However, other export-intensive sectors that have not been performing consistently well in recent days also declined. Sony, the consumer electronics giant which is one of Japan's biggest exporters, fell 1.5 per cent to Y3,840.

The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and BOV Stockbrokers Ltd (2122 7370/1/4).