FTSE under pressure
The FTSE 100 Index was close to its opening mark today after fears over slowing economic growth in the US put European markets under early pressure.
The Footsie was 18 points in the red at 6209.7 at mid-morning after recovering from a 37.4 point fall earlier in the session.
The sluggish beginning in London was caused by a drift in the Dow Jones Industrial Average overnight on bearish predictions of US payroll data expected later today.
Heavily weighted mining stocks bore the brunt of the early sell-off with Xstrata the biggest faller, down 44p at 2419p despite an upgrade from Lehman Brothers. Antofagasta, off 9p at 467p, and Rio Tinto – down 27p at 2692p, also suffered.
On a slow day for corporate news, supermarket retailers led the risers’ board fuelled by bid rumours. Talk of a 620p offer for Sainsbury’s sent its shares ticking up 6.5p to 543p while speculation over private equity interest in Wm Morrison helped the firm add 8.25p to 315.75p ahead of results next week. Tesco was also on the front foot, 6p up at 440.25p.
Sugar giant Tate & Lyle also advanced 6.5p at 569p as talk of a private equity bid resurfaced.
Broker upgrades pushed Norwich Union owner Aviva and British Airways higher up the risers board with a UBS report highlighting growing earnings momentum in the European insurance sector while Citigroup emphasised the growth potential for British Airways from Heathrow’s new Terminal 5. Aviva was ahead 4.5p at 773.5p while British Airways was up 4.5p to 5.25p.
Elsewhere, electrical firm T Clarke’s shares jumped 5% ahead – or 11.5p at 238p after the firm reported healthy orders and outlook despite a fall in profits during last year. Broker Panmure Gordon raised its target price on the stock to 255p.
