FTSE slides back under 4,700 barrier
The FTSE 100 Index dipped back below the 4700 barrier today as investors fretted over high oil prices and surprisingly weak manufacturing data.
By mid-morning the Footsie had weakened 11.9 points to 4695.2 after the cost of a barrel of crude soared above the 51 US dollars mark for the first time in its history.
The sky-high price of crude, fuelled by concerns over US production following hurricane damage, also dampened spirits in New York last night, with the Dow Jones Industrial Average closing nearly 40 points in the red.
Figures from Britain's Office for National Statistics released this morning showed that UK manufacturing output fell by 0.8% during August. One analyst said this was “significantly below expectations”.
In London, a clutch of oil-dependent stocks saw their share prices fall, including engineering group Tomkins off 8.5p to 266.5p, ICI down 5.25p at 217p and British Airways 2.25p lower at 207.5p.
In contrast, oil giants BP and Shell both benefited from the rise, advancing 8p and 4.5p to 557p and 422.75p respectively.
Drugs giant AstraZeneca was in the red – off more than 2%, or 53p to 2230p - after saying approval of a key diabetes drug would be delayed by safety tests.
Retailers outside the top flight were providing much of today’s corporate news, with Ted Baker up 6.5p to 424p after reporting a 26% rise in first half profits.
Telecoms retailer Carphone Warehouse added 0.5p to 151.25p after a positive update on trading showed the number of connections in its second quarter rose 25%.
But Austin Reed’s shares slipped back 3.5p to 131.5p after it announced “unacceptable” half-year losses of £2.7 million.
Excel Airways lost a third of its market value, plunging 55p to 110p, as it emerged its two biggest shareholders were in talks that could lead to a takeover by Iceland-based Air Atlanta.
