FTSE under pressure again

Shares in London were under pressure for a second successive session today as investors continued to be shaken by global economic worries.

The FTSE 100 Index was down 55.1 points at 6231 by mid-morning, although this represented a recovery from the opening moments of trading when the top flight index slumped by 102 points. It fell 148.6 points yesterday after the Shanghai Composite dived 9% and investors latched on to recession fears expressed by former Federal Reserve chairman Alan Greenspan.

The Dow Jones Industrial Average also suffered its worst decline since September 11, while Japan’s benchmark Nikkei Index tumbled 3%.

Analysts said the slump reflected a correction by world markets after a strong run that had powered the FTSE 100 Index to a six-year high.

The key to any recovery is likely to come from the market’s reaction to GDP figures due out in the United States later today.

Halifax Bank of Scotland topped the FTSE 100 fallers’ board, despite posting a 19% rise in annual profits to £5.71bn (€8.5bn). The stock lost 43p to 1090p, a fall of almost 4%.

Asian-facing bank Standard Chartered also suffered, down 8p to 1442p after it revealed yesterday that impairment losses on loans and other credit risk provisions almost doubled in 2006.

Miners continued to sustain heavy losses with Xstrata leading the pack off 40p at 2439p and Anglo American down 50p at 2457p.

Leisure group Whitbread set the pace among the risers after posting a trading update at the top end of expectations. The stock was 55p higher at 1686p.

Argos owner Home Retail Group was another blue-chip stock in positive territory with a gain of 11.75p to 431.75p amid continued rumours of a possible takeover bid from private equity group Apax.