Housing news depresses FTSE

London's blue-chip index was today stuck in negative territory following the latest gloomy survey on the UK housing market.

The FTSE 100 Index stood 29.3 points lower at 6468.5 by 11.15am this morning, with markets worldwide hit by geopolitical concerns after the assassination of Pakistan's former Prime Minister Benazir Bhutto.

Banking stocks dragged the market lower, as investors in the United States continued to speculate about further fall-out from the credit crunch.

Barclays was 10p lower at 502p, while Royal Bank of Scotland lost an earlier positive start to stand 5.25p cheaper at 441.25p.

The sight of oil prices at $97 a barrel also caused jitters, along with the news that the Nationwide building society said house prices eased 0.5% in December.

Housebuilder Taylor Wimpey was among the fallers, easing 3p to 204.5p, while Charles Church owner Persimmon nudged lower, down 9.5p to 781p.

The biggest faller was Intercontinental Hotels Group, down 2% or 9.75p to 411.75p. It followed a warning that fears of overcrowding and high prices might scare off regular tourists from London during the 2012 Olympics.

Retail stocks made mixed progress with Argos owner Home Retail Group reversing a fall of 4p to put on 1.5p to 325.25p. Marks & Spencer also featured highly on the gainers board after an otherwise flat morning, putting on 3p to 553p.

Supermarket giant Morrisons managed an extra penny, to 318.75p, while rival Sainsbury's was also in positive territory, up 2p to 429p.

The risers board was topped by publisher Reed Elsevier, which showed a gain of 10.5p to 678p.

Meanwhile, energy supplier Scottish & Southern Energy extended yesterday's good form for power stocks with a gain of 10p to 1669p. Gas exploration and production company BG Group cheered 10p to 1152p.