FTSE slightly lower
London's FTSE 100 Index held firm today despite another rocky session for banks as worries mounted over a possible debt default in the US.
Ratings agency Moody's added to the pressure after it cut Greece's debt to two notches above default status and said the country's latest rescue could lead to downgrades elsewhere because of the precedent for further bail-outs.
While the FTSE 100 Index was 13.9 points lower at 5921.2, banks dominated the fallers board with Barclays down 8.2p at 231.4p and Lloyds Banking Group 1.4p lower at 45.8p.
Banks were already shaky prior to the weekend because analysts fear write-downs for exposure to Greek debt in upcoming half-year results.
General sentiment is also being driven by the deadlock in the United States, where politicians are within days of a default on the country's debt.
Wall Street futures pointed to a weak start for the Dow Jones Industrial Average as investors prepared for another demanding week.
Ben Potter, market strategist for IG Markets, said: "The only thing you can be assured of over the coming hours and days is volatility as the political posturing continues in the US,"
Investors diverted some of their money into safer havens such as gold, which climbed as high as $1621 an ounce.
Utilities were also in demand, with United Utilities up 6.75p to 594.75p and Severn Trent 13.5p higher at 1464.5p. National Grid, which also benefited from a trading statement reporting a good start to its financial year, gained 1% or 6.75p to 616.75p.
In other corporate developments, shares in building supplies firm Wolseley rose 11p to 1917p after it announced the sale of its Build Center business to Jewson owner Saint-Gobain for £145m (€164.3m).
Outside the top flight, takeaway firm Domino's Pizza won over investors after an initially lacklustre reaction to its half-year results.
Shares opened lower after it reported a further slowdown in sales growth, but with Domino's also detailing a £2m (€2.2m) rise in half-year profits to £19m (€21.5m) and plans to bolster marketing activity its shares recovered to stand 6% or 29.55p higher at 488.65p.
One of the biggest gains of the session came from school activity centres operator Holidaybreak after it said it had received a takeover offer.
The company did not reveal the identity of its suitor but shares still jumped 15% or 49.1p to 368.1p.
