FTSE slips below 4700 barrier
The FTSE 100 Index slipped below the key 4700 barrier today as negative sentiment from across the Atlantic hit shares.
Telecoms stocks ate into earlier gains inspired by Royal Bank of Scotland’s upbeat trading statement, leaving the Footsie 15.5 points lower at 4688.4.
An unexpected rise in US jobless figures contributed to the Dow Jones Industrial Average standing 50 points lower by the end of trading in London.
A rebound by oil prices also took its toll – the January futures price of a barrel of US light crude rose to more than $42 ahead of tomorrow’s Opec meeting in Cairo.
The Bank of England’s announcement that it was leaving interest rates on hold at 4.75% had been widely expected by analysts and failed to move the market.
Other economic news coming out of London showed a widening trade gap and record imports – data described by experts as “disappointing”.
Royal Bank of Scotland did its best to prop up the market after saying it was confident of meeting market hopes. It was the fourth highest Footsie riser – up 26p to 1669p.
However, other financial stocks that recorded earlier gains lost ground, with HBOS down 10p at 760p, Lloyds TSB drifting 4p to 426.5p and Barclays sliding 1.5p to 548p.
Telecoms giant BT weakened 5p to 198.75p after a case was dismissed by the Competition Appeal Tribunal. Vodafone also fell 2.75p to 142p as a broker note failed to cheer investors.
Publisher Trinity Mirror was 8.5p lower at 613.5p despite saying its sports newspapers were its star performer in the second half as it reported trading in line with expectations.
However, investors in Premier Foods licked their lips at the acquisition of the Bird’s Custard and Angel Delight brands from US giant Kraft. Shares in Premier rose 4% or 9.75p to 256.75p.
The highest Footsie climbers today were Reckitt Benckiser up 32p to 1545p, Cairn Energy adding 27p to 1400p, Compass up 4.25p to 236p and Royal Bank of Scotland adding 26p to 1669p.
The heaviest fallers were Exel down 23p to 723p, Amvesap off 8.75p to 311p, BT down 5p to 198.75p and Schroders NV off 12.5p to 635.5p.
