Poor day for FTSE
The London market retreated today despite having come within touching point of the September 2000 highs earlier in the session.
The FTSE 100 Index slumped 86.2 points to 6644.5, after downbeat earning results in the United States offset a surge in the price of crude oil.
Wall Street endured a downbeat opening after banking giant Citi unveiled a 57% drop in third quarter earnings on the back of investments in mortgage backed securities.
While the fall was not as severe as previous expectations, the news impacted sentiment on this side of the Atlantic adding to the current strain on financial stocks.
Crisis-hit Northern Rock was the biggest Footsie faller as the mortgage lender dampened hopes of a speedy rescue. Investors were also gearing up for what could be a gruelling session for chief executive Adam Applegarth and chairman Matt Ridley in front of MPs at the Treasury Committee meeting tomorrow.
The firm fell 21%, or 57p, to 216.25p - wiping out the bulk of last week's 115p gain - after confirming that talks with potential suitors were only "at a very early stage", compounding weekend press reports of limited shareholder returns.
Fellow mortgage lender Alliance & Leicester dropped 46.5p to 754p, while Halifax Bank of Scotland was 27.5p lower at 878p.
Royal Bank of Scotland fell 19.5p to 526.5p and Barclays slid 21.5p to 626.5p, while insurance firms were also out of favour.
Legal & General was more than 4% lower, or 6.3p at 135.5p, after a broker note from JP Morgan said the sell-off in the stock was not complete, citing pressure at the group's core annuities and protection business. Norwich Union parent Aviva dropped 36p to 747.5p and Prudential saw a 33.5p decline to 744.5p.
Oil giants featured among the handful of top tier risers after surging oil prices hit new highs during the session. BP was up 3.5p at 622.5p also helped by talk of a recovery from chief executive Tony Hayward, while rival Royal Dutch Shell rose 14p to 2055p as crude reached $85 a barrel.
But Catalyst to chemicals group Johnson Matthey was the strongest gainer - up 10%, or 166p to 1840p, after a late run on the stock.
Brewing group SABMiller drifted back from recent gains - down 70p at 1413p - despite posting 11% organic growth in lager volumes and saying trading was in line with expectations.
Currys owner DSG International was one of the session's top fallers amid uncertainty surrounding its trading update due later in the week. The stock was off 9.2p at 135.3p.
Elsewhere, casino and bingo group Rank plunged 12%, or 15.25p to 109.75p, following a 21% slump on Friday when it revealed profits would miss forecasts after it was hit by the smoking ban and changes to gaming machine legislation.
The biggest Footsie risers were Johnson Matthey up 166p at 1840p, Royal Dutch Shell ahead 14p at 2055p, BP up 3.5p at 622.5p, and Tate & Lyle ahead 1.5p at 434.5p.
The biggest fallers were Northern Rock down 57p at 216.25p, DSG International off 9.2p at 135.3p, Alliance & Leicester down 46.5p at 754p and SABMiller off 70p at 1413p.
