FTSE finishes in the red

Negative sentiment on Wall Street spilled across the Atlantic today as the London markets gave up early gains to plunge into the red.

The FTSE 100 Index was as high as 6114.5 early in the session but closed the day 41.4 points down at 6042 after the Dow Jones Industrial Average lost more than 100 points by the time the London markets closed.

The fall came despite a strong rally by mining stocks on the back of record copper prices which saw Xstrata and Kazakhmys top the risers board.

CMC Markets trader Jimmy Yates said: “The Footsie may have started the session in a rather bullish mood backed by a run of strong corporate earnings announcements, but downbeat economic news out of the US has left Wall Street to trade in negative territory, with the lacklustre sentiment carrying across to the London index too.”

Copper hit a fresh high of $8,312 (€6,500) a tonne today and traders speculated that it had further to go as demand from China was strong while supplies were tight.

Xstrata gained 82p to 2480p while Kazakhmys was 41p stronger at 1370p, and they were followed by Rio Tinto – up 41p to 3322p – and Antofagasta – up 28p to 2553p.

Speculation that Singaporean investment group Temasek was considering a bid for Asian bank Standard Chartered sent its shares 5p higher to 1455p.

Friends Provident was also on the front foot up 2% or 3.5p to 194.75p while Legal & General lifted quarter of a penny to 139.5p.

But Royal & Sun Alliance gave up early gains to close 1.25p lower at 139p despite positive first-quarter figures in which it reported a better-than-expected 29% rise in operating profits to £207m (€303.3m).

A number of bankers also fell, with Lloyds TSB down 6.5p to 520p, Barclays off 11.5p to 656.5p and HSBC 14.5p lower at 970p.

And ITV struggled for a second session in a row amid disappointment at a 2% rise in first quarter advertising revenues – below the 3.3% growth estimated for the wider market. ITV shares were close to the top of the Footsie fallers board after a drop of 2.75p to 111.25p.

Outside the top flight, services group VT and engineering firm Babcock were both close to their opening marks, despite the collapse of a deal which could have led to the unification of the nation’s shipyards.

Along with BAE Systems – down 0.75p at 421.5p – VT had planned a £700m (€1bn) takeover of Babcock, which was unchanged at 315p. VT stood 0.5p higher at 485.5p after the move fell through last night.

Elsewhere, estate agency group Countrywide saw its share price fall 4.25p to 543.75p even though it revealed that activity levels were at a record level.

The day’s biggest blue chip risers were Xstrata up 82p to 2480p, Kazakhmys up 41p to 1370p, BSkyB up 11.5p to 528.5p, and Friends Provident up 3.5p to 194.75p.

The heaviest fallers were Marks & Spencer off 21p to 611p, International Power down 9.5p to 298.5p, National Grid 14p lower at 557p, and ITV down 2.75p to 111.25p.