Interest rate concerns hit FTSE
The London market saw its hopes of ending in positive territory dashed today by concerns over higher interest rates.
Analysts believe the cost of borrowing is certain to rise in August after inflation edged up to 1.6% last month, while some think the Bank of England may even debate a half-point hike.
A poor start to trading on Wall Street also contributed to the FTSE 100 Index closing the session 2.3 points lower at 4357.7.
The strongest stock in the Footsie was building products group Wolseley as investors welcomed news that its businesses in North America and the UK had outperformed their markets.
Shares rose more than 5% or 42.5p to 875p.
Financial stocks also did their best to prop up the market, with HBOS advancing 2.5p to 675p, Royal Bank of Scotland ahead 11p at 1561p and Barclays 3.5p higher at 455p.
Abbey National cheered 0.5p to 490.5p after concluding a long-running review of its with-profits funds and reassuring investors over its financial position.
But another poor day on the markets for Vodafone saw the mobile phone group slip 0.75p to 117.5p – its lowest share price since September.
Marks & Spencer fell 4.5p to 359.5p as investors continued to search for clues as to the likely outcome of the ongoing bid battle involving retail tycoon Philip Green.
Biggest winners included Wolseley, up 42.5p to 875p, WPP Group climbing 12p to 530p, ICI lifting 4.75p to 215.5p and United Utilities advancing 9p to 520p.
Largest losers included British Airways, down 5.25p to 244.75p, Whitbread off 16.5p to 836.5p, Hilton Group falling 4.5p to 256.5p and Dixons retreating 2.75p to 158p.
