FTSE drops 58.1 points

The London market suffered more losses today as Greece’s debt turmoil and disappointment over earnings from mobile phone handset giant Nokia hit stocks worldwide.

Miners and financial shares led the sell-off as economic confidence suffered in the wake of the latest bad news from Greece.

The FTSE 100 Index dropped 58.1 points to 5665.3 while the Dow Jones Industrial Average fell nearly 1% in New York.

Indices also dropped across Europe, with the Cac 40 in France among the worst impacted, down 1.2%.

European statistics agency Eurostat reported that Greece’s budget deficit in 2009 was 13.6% of gross domestic product, instead of the previously predicted 12.9%, while the ratio of government debt to GDP stood at 115.1%, the second highest in the EU after Italy.

The agency also expressed “a reservation on the quality of the data reported by Greece,” and warned the 2009 figures could be revised further.

Further fears over Greece saw the euro take another hit, with the pound up to levels not seen since February against the single currency, at 1.16 euros.

But sterling eased back marginally against the US dollar, to 1.54 dollars.

News from the corporate results season also weighed sentiment on the Footsie, even though Nokia’s first-quarter net profit surged on the back of smart phone sales and 3% growth in total revenues.

Nokia’s share price plunged 14% in Helsinki as traders had expected a better performance and a more upbeat forecast.

Indications of weak crude demand in the US also sent oil prices lower to around 83 dollars a barrel.

In London, oil and commodities firms littered the fallers board, while financial firms also suffered due to economic fears, with Prudential down 19p to 545.5p and Aviva 11.7p lower at 374p.

British Airways was also down 8p at 225.5p as airline losses remain in the spotlight following the closure of European airspace as a result of the Icelandic volcanic eruption.

The sell-off wrecked earlier gains in the FTSE 250 Index, with gaming firm Rank up by a marginal 1.1p to 119p after initially rising by more than 5% in the wake of a well-received trading update.

Rank had been lifted by the success of its new-look Grosvenor Casino business, while its Mecca bingo arm also posted a resilient performance.

Persimmon was 14.3p higher at 480p after its trading statement showed sales volumes have remained consistent despite the backdrop of continued election uncertainty. Rival firm Taylor Wimpey benefited, adding 1p to 40.1p.

Sports World retailer Sports Direct International declined 2% despite posting sales growth of nearly 3% and said it remained on course to meet its recently improved full-year earnings target. Shares were 2p lower at 106p.

The biggest Footsie risers were Arm Holdings ahead 8.4p at 258.9p, Autonomy up 52p at 1834p, Intercontinental Hotels up 21p at 1075p and Intertek up 29p at 1534p.

The biggest Footsie fallers were Shire down 51p at 1411p, British Airways off 8p at 225.5p, Prudential down 19p at 545.5p and Liberty International down 17p at 502p.