Bleak FTSE session reflects worldwide trend

Traders endured a bleak session today as markets worldwide struggled in the wake of weaker-than-expected US consumer confidence figures.

Asian markets were down by more than 1%, while the FTSE 100 Index shed 87.5 points to 5113.4 by mid-morning as confidence in the global economic recovery took a knock.

Miners were the main casualties in the sell-off, with Xstrata down 6% or 62.5p to 911p and Kazakmhys off 70p at 1154p.

Prudential fell after it reported a 9% drop in new business for the third quarter, dragged lower by the UK and its wholesale insurance operations.

Shares were off 29.5p to 581p, while rival Aviva slipped 14.4p to 406.1p and Legal & General fell 4.35p to 78.2p.

Royal Bank of Scotland fell by as much as 5% at one stage amid continued fears over harsher than expected sanctions from European regulators as the price of state support. RBS shares were later down 2% or 0.9p to 39.9p, while Lloyds Banking Group was off 2.9p at 80.9p.

Oil and gas exploration firm BG Group was another faller – down 28.5p to 1104p - after it posted a 44% drop in third-quarter earnings due to lower oil prices.

A shortened risers board featured British Gas owner Centrica after it announced plans to invest £275m (€303) to build a new offshore wind farm off the coast from Skegness.

It has also raised more than £400m (€441m) from the sale of half its stake in the Lynn and Inner Dowsing wind farm off the Lincolnshire coast. Shares rose 0.9p to 245.1p.

In the FTSE 250 Index, retailer Carpetright struggled to make headway, despite revealing a jump in sales in the past 12 weeks and forecasting better than expected first half profits.

Analysts were concerned by a fall in UK margins, causing shares to dip 9p to 891p.