FTSE slips into the red

The London market dipped into the red today as investors continued to weigh up how Osama bin Laden’s death would impact financial markets.

In its first session since the extended holiday weekend, the FTSE 100 Index stood 12 points lower at 6057 as it became clear terrorism would remain a threat despite the demise of the al-Qaida founder.

World markets were boosted yesterday after bin Laden’s death was confirmed by US President Barack Obama, triggering gains in Asia, Europe and the US, before the risk of repercussions dampened the rally.

A stronger dollar made crude oil and other commodities more expensive, which dragged down heavily-weighted mining stocks.

Copper-miner Antofagasta sank to the bottom of the Footsie, dropping 46p to 1320p, with fellow copper giant Kazakhmys just behind, down 35p at 1344p.

Downbeat surveys on the retail and manufacturing sectors also weakened sentiment.

The latest retail sales survey from the CBI suggested a pick up in trade in April but worryingly for the economy, companies feel the growth may be short-lived.

Retail shares fell as a result, with Marks & Spencer leading the sector’s declines, down 8p at 380p, and Next and B&Q parent Kingfisher off 45p at 2192p and 5.7p at 268.8p respectively.

Elsewhere, the Markit/CIPS Purchasing Managers’ Index fell to 54.6 in April from a downwardly revised 56.7 in March, signalling further weaknesses in the economy and another drop in consumer spending.

The disappointing figures hit the pound, which fell against most major currencies.

Man Group led the risers’ board, up 8.7p at 258.4p, after the investment manager successfully launched a new fund in Japan, which has raised $1.5bn (€1bn).

An otherwise quiet start to the week shifted the focus on to chocolate retailer Thorntons, which slumped 10% or 8.2p to 72p after warning on profits.

The company said the hot weather put customers off buying chocolate and this meant same-store sales plunged 23% over the crucial Easter week. It now expects pre-tax profits to be between £3m and £4.5m (€3.4m and €5m) for the year to June 25, compared with £6.1m (€6.8m) the previous year.

Shares in car dealership Lookers were slightly higher after veteran investor Jack Petchey confirmed his interest in a takeover bid for the Manchester-based business.

While Mr Petchey’s investment vehicle said Lookers had failed to provide it with information needed to make an offer, shares still rose 0.2p to 66p.