FTSE in bumpy ride to closing today

The FTSE 100 Index endured a bumpy end to the session today after the release of widely-anticipated oil inventories data in the US.

The Footsie finished the day down 54.8 points at 6420.1 despite the figures coming in better-than-expected and helping ease oil prices back from the psychologically key 100 US dollars a barrel level.

US oil inventories fell 800,000 barrels last week, according to the figures, which was half the 1.6 million barrel drop some were forecasting.

Volatility at the end of the day was heightened by technical pricing problems on the London market, which saw the closing auction period extended for more than an hour.

The top flight index had already endured a volatile day prior to the glitch, having traded in positive territory in the first hour of the day before plunging as much as 90 points at one stage.

Anticipation of the US inventories led to the sensitivity, but the continued weakness of the dollar also contributed to volatility, after hitting a new 26-year low against the pound.

Sterling reached more than 2.10 US dollars amid expectations that the Bank of England will hold interest rates at 5.75% tomorrow, alongside speculation that China may move foreign reserves away from the dollar.

Oil major Royal Dutch Shell was one of the firms to benefit from the high oil prices, despite crude falling back slightly to just over 97 US dollars a barrel. The stock was up 12p at 2021p.

BP, however, gave back earlier gains to stand 16.5p lower at 617p.

Miners also held firm after higher metal prices and vague consolidation talk gave the sector a push.

Rio Tinto earned a place on a diminished Footsie riser’s board, up 16p at 4350p, although Anglo American reversed gains seen earlier, down 9p at 3143p.

Other risers included Carphone Warehouse, up 1.25p at 355.75p, ahead of half-year results tomorrow.

One of the leading Footsie fallers was British Energy, which fell more than 7%, or 40p, to 515p after the company failed to provide a date for the return of two of its eight nuclear power stations. Hartlepool and Heysham 1 are currently out of action after wire corrosion problems.

Other companies joining British Energy on the fallers board were dollar-exposed businesses, such as British Airways off 21p at 368p.

Fashion chain Next was also down 138p to 1914p – a fall of 7% – as news of a recent improvement in sales failed to impress investors after the group reported “volatile” trading conditions. Argos owner Home Retail Group was also shaken, with shares down 15.5p at 394.25p.

Next’s concerns over rising mortgage payments for its customers were echoed among housebuilders, as Persimmon fell 418 to 942p on a pessimistic update from second-tier peer Redrow. Redrow was off 11.75p at 358p.

The biggest Footsie risers were International Power up 17p at 479p, Rolls-Royce up 7p at 523.5p, BG Group up 8.5p at 905p and Scottish and Southern Energy up 14p at 1559p.

The biggest Footsie fallers were Old Mutual down 19.8p at 155p, Liberty International down 109p at 1010p, British Energy down 40p at 515 and Northern Rock off 11.1p at 153p.