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UK stocks fall as U.S. fiscal cliff optimism ebbs
December 21, 2012 / 8:11 AM / 5 years ago

UK stocks fall as U.S. fiscal cliff optimism ebbs

LONDON, Dec 21 (Reuters) - Britain’s top share index fell on Friday, the final full trading session before Christmas, tracking falls by U.S. futures as optimism regarding a key deal on the U.S. budget ebbed.

U.S. Republican lawmakers have rejected party leader John Boehner’s proposal designed to win concessions from President Barack Obama in the “fiscal cliff” talks, reviving fears of $600 billion worth of tax hikes and spending cuts that could drag the U.S. economy back into recession.

At 0803 GMT the FTSE 100 index was down 27.42 points, or 0.5 percent at 5,930.92, having closed 0.05 percent lower on Thursday, stalling around nine-month highs in its pursuit of the psychologically important 6,000 points mark.

Early trading is predicted to be volatile ahead of the expiry of December options, due around 1015 GMT, which might galvanise the market into trying another assault on 6,000 - last seen in July 2011 - given a concentration of bets around that level. (Reporting by Jon Hopkins; Editing by Toni Vorobyova)

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