Get 40% Off
💰 Warren Buffett reveals a $6.72 billion stake in ChubbCopy Portfolios

FTSE off 1 pct on weak U.S. data, oils drag

Published 06/30/2009, 12:27 PM
Updated 06/30/2009, 12:32 PM
UK100
-
BARC
-
BP
-
PRU
-
FERG
-
XTA
-
AZN
-
ENRC
-
AAL
-
BG
-
STAN
-
AMFW
-

* FTSE 100 falls on weak U.S. consumer confidence data

* Oils fall with crude price decline on weakening demand

* Banks and miners also down

By David Brett

LONDON, June 30 (Reuters) - Britain's top share index shed 1 percent on Tuesday in the wake of weaker than expected consumer confidence figures in the United States, with banks, miners and food retailers leading the fallers.

The FTSE 100 index closed 44.82 points lower at 4249.21.

However, the index is up 8.2 percent on the quarter, the best such performance since the final quarter of 2003 and it has gained 22.8 percent since touching a six-year low on March 9.

U.S. data showed consumer confidence fell in June after two straight months of gains and Americans saying jobs are "hard to get" increased to 44.8 percent from 43.9 percent the previous month.

The news came on the back of UK figures that revealed the British economy contracted at a much sharper pace than initially thought, falling by 2.4 percent in the first quarter, revised down from a fall of 1.9 percent. The fastest rate in more than 50 years.

"(The) session has descended into a degree of carnage after the release of some worse than expected U.S. consumer confidence figures," David Fineberg, head of trading at CMC Markets.

Falling crude prices at under $70 a barrel helped send oil majors lower. BG Group, BP and Royal Dutch Shell fell between 1 and 1.8 percent.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

BG Group also said it would pay Dallas-based Exco Resources Inc $1.3 billion for an interest in shale gas resources, as oil and gas firms continue to snap up assets before an economic recovery drives prices higher.

Miners dropped between 0.5 and 3.1 percent, with Randgold Resources, Anglo American, Fresnillo, Eurasian Natural Resources and Xstrata the biggest fallers.

"Some of it is window dressing ... locking in profits from gains seen over the last few days," said Stephen Pope, chief global strategist at Cantor Fitzgerald.

Xstrata confirmed its $1 billion estimate of synergies from its proposed merger with Anglo American after UK newspaper the Times had reported advisors as saying the figure could be much higher.

Banks also headed south. Lloyds Banking Group, Royal Bank of Scotland, HSBC and Standard Chartered shed between 0.9 and 3 percent. However, Barclays was an exception, up 1.2 percent.

Astrazeneca fell 1 percent after the company and its drug development partner Pozen submitted their experimental two-in-one pain drug PN400 for regulatory approval in the United States.

Also on the downside, life insurers Prudential and Legal and General fell 0.6 to 2.2 percent, retreating from some strong gains made on Monday.

SUPPORT SERVICES BUOYED

Meanwhile British building supplies company Wolseley topped the FTSE 100 risers after it announced Chief Executive Chip Hornsby would step down with immediate effect. The stock rose 2.8 percent.

The world's biggest security firm G4S and credit information firm Experian gained 0.2 and 0.9 percent respectively.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Oil services group Petrofac rose 1.8 percent. The company said it expects to start production from the Don Southwest field in the UK North Sea in the next few days. Peer AMEC climbed 2 percent.

Thomas Cook added 2.8 percent after news the German government said it would give aid to its majority German shareholder Arcandor.

Looking ahead a quarterly poll of 13 strategists showed Britain's FTSE 100 index is expected to end the year up by around 3.7 percent.

"There is evidence to the effect that the green shoots are actually going to transform into a fully fledged recovery by the time we get into the final quarter of the year," said Mike Lenhoff at Brewin Dolphin. (Editing by Greg Mahlich)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.