FTSE rallies on back of US confidence
The London market recovered some of its earlier losses today as a fall in US consumer confidence allayed fears of US rate rises.
The FTSE 100 Index rebounded from an earlier 47.6 point loss to close 27.9 points adrift at 5032.9.
US consumer confidence fell in February from a six-month high, reflecting a decline in expectations for the next half year, although economists said they still anticipated healthy retail spending. The Dow Jones Industrial Average nevertheless lost ground, standing 50 points off shortly after London’s close.
The news helped London stocks regain some of their poise after traders pulled out of heavyweights such as BP, Shell and Corus.
Steel giant Corus was one of the session’s heaviest fallers, off 3% or 2p to 57p, after Japanese rival Nippon Steel said it had agreed to an increase in iron ore prices next year.
Mining firms were among the few risers following the news, despite one analyst saying it was unlikely to lead to significant upgrades to the stocks. Antofagasta cheered 20p to 1346p, BHP Billiton lifted 1.5p to 727.5p and Rio Tinto was 20p higher at 1779p.
Heavyweight oil firm BP lifted 2p to 560.5p, but Shell lost 2p to 493.25p as investors expressed dismay at figures from Spanish rival Repsol.
Banks were among the other fallers in London after FTSE 250 mortgage lender Bradford & Bingley said growth in the important buy-to-let market was moderating.
Although B&B announced a higher-than-expected 6% rise in pre-tax profits, shares dropped 11.75p to 329p, after broker West LB recommended punters sell the stock.
The news had a knock-on effect on top flight banking stocks, particularly B&B’s main rivals in the mortgage market.
HBOS was the highest faller among the mortgage banks, dropping 14p to 852p, while Alliance & Leicester lost 12p to 924p and Northern Rock shed 2.5p to 805p. Other fallers in the sector included Barclays, which slipped 7.5p to 605p, Royal Bank of Scotland off 16p to 1808p and Lloyds TSB cooling 1p to 505.5p.
Marks & Spencer recovered earlier losses to stand at the head of the Footsie after retail tycoon Philip Green moved to quash speculation that he may be lining up another takeover approach for the troubled group. Shares in M&S added 6.5p to 374p.
Back in the lower tiers, confectionery group Thorntons lifted nearly 2% or 3p to 156.5p after saying sales of its products through other retailers had helped to lift half-year profits by 10%.
And building and infrastructure group Morgan Sindall advanced 29p to 656p after posting record annual results as profits from its affordable housing arm grew by more than half.
The day’s biggest risers were Marks & Spencer, up 6.5p to 374p, Tate & Lyle increasing 8p to 514p, Antofagasta lifting 20p to 1346p and BG Group gaining 5.5p to 404p.
Biggest losers were Corus, down 2p to 57p, Sainsbury’s off 7.75p to 286.75p, Schroders NV losing 17p to 695.5p and mmO2 weakening 3p to 127p.
