FTSE falls below 4,900
London shares ended the week below 4900 after weak US economic data compounded gloom from the tech and mining sectors.
The FTSE 100 Index sank back in late trading to end the session 53.8 points off at 4891.6.
A retreat in the consumer sentiment index from the University of Michigan sent the Dow Jones Industrial Average reeling 68 points in early trading in New York.
The confidence figure was the lowest since September 2003, as rising fuel prices took a greater share of people’s incomes.
The Empire State Manufacturing Survey also showed manufacturing in New York state increasing at the slowest pace for two years.
Analysts cited a slide in base metal prices for a lacklustre performance by miners in London and losses by US technology giants continued to depress the Dow.
Upbeat news from US firms General Electric and Citigroup and gains by drugs stocks in London failed to offset the gloom.
Pharmaceutical giants AstraZeneca and GlaxoSmithKline were among the biggest top-flight climbers, up 43p and 12p to 2284p and 1265p respectively, after a court ruled that the patent on one of US counterpart Eli Lilly’s drugs was valid.
Utilities were also doing well, with Severn Trent advancing 9.5p to 949p, Scottish Power up 3p to 418p and Scottish & Southern Energy lifting 4p to 929.5p.
Among those in London to feel the backlash of last night’s US troubles was Sage Group – the only technology stock left in the Footsie – which fell more than 2% or 4.75p to 203.75p. It sells accountancy software to small and medium-sized businesses, many of which are based in the US.
The top Footsie faller was steel maker Corus, which lost 4% or 2.25p to 50.5p as investors fretted over lower metals prices.
Miners continued their decline, led by the 50p fall of Antofagasta to 1150p, BHP Billiton off 18p at 656p and Xstrata weakening 2% or 24p to 950p.
After initially countering the sell-off, electricals chain Dixons lost 0.5p to 148.5p following its announcement of a milestone deal in Russia. It signed a co-operation deal with Eldorado and secured an option for a 1.9 billion US dollars (£1.01bn) takeover offer for the Russian retail giant.
One of the heaviest fallers outside the top flight was Highbury House Communications, down 36% or 3.5p to 6.12p, after a takeover by rival Future was ditched.
United Business Media also weakened after reaching agreement to sell market research arm NOP World to German research group GfK for £383 million, slipping 2% or 13.5p to 531p.
However, Northumbrian Water was high in the FTSE 250 Index, up 1% or 2.75p to 190.25p as talk of a possible bid for the utility group continued to circulate.
The day’s biggest risers were AstraZeneca, up 43p to 2284p, Bunzl 5.5p ahead at 540p, Severn Trent lifting 9.5p to 949p and GlaxoSmithKline advancing 12p to 1265p.
Biggest fallers were Corus down 2.25p to 50.5p, Antofagasta losing 50p to 1150p, Amvescap weakening 12.5p to 316.5p and Man Group off 47p at 1343p.
