FTSE Close: Serco up; Tullow leads falls
17.00 (close)
Big Wednesday?: Shares have struggled to make progress today.
More disappointing economic data from the US kept markets on a downward spiral today as investors remained concerned by the pace of the economic recovery.
The FTSE 100 Index struggled to keep above the 5100 mark and closed 46 points down at 5109, after the US Commerce Department said durable goods orders only rose 0.3% last month, much worse than the 2.8% growth forecast.
On the other side of the Atlantic, as the London market closed, Wall Street's Dow Jones Industrial Average, which yesterday dipped below 10,000 for the first time since early July, was down by just under 1% at 10033.
Traders' confidence has been shaken by a string of troubling updates on the US economy, including dismal home sales figures on Tuesday.
The world's biggest economy will be further tested later this week with the release of figures on consumer confidence and revised second quarter GDP, as well as the latest speech on the state of the economic recovery from Federal Reserve chairman Ben Bernanke.
The mood in Japan was also uncertain after figures earlier today showed the country's exporters were feeling the pinch after demand from overseas customers slowed for the fifth consecutive month in July. The Nikkei 225 fell by almost 2% overnight.
The poor economic figures from the US saw the pound rise against the US dollar to 1.54. The pound was also up against the euro at 1.22.
The fallers board in London featured a number of resources-based stocks as investors continued their flight from risk.
Tullow Oil closed 59p down to 1238p after a lacklustre reception to first-half results while Antofagasta fell 34.5p to 977.5p and BP extended the losses seen in recent days with a decline of 2.4p to 375.2p.
Stocks on the way up included some of those with half-year results out today.
The biggest rise in the FTSE 100 Index came from support services firm Serco after its adjusted profits improved 19% to £110.2m and it said it stood to benefit as many government and commercial customers looked to reduce costs.
The half-year figures were in line with expectations and caused the company's shares to rise 27p to 586.5p, a gain of 5%.
Car insurer Admiral Group was another blue-chip riser, after it reported a 21% rise in pre-tax profits to £126.9 million in the first six months of the year. The figures were better than expected and resulted in shares rising 3% or 39p to 1512p.
Temporary power firm Aggreko was not so fortunate as it sunk to the bottom of the London market, fading 83p to 1346p. The stock, which has risen sharply in the last year, was under pressure despite posting a 50% hike in its dividend and forecasting higher than expected profits.
The biggest Footsie risers were Serco, up 27p to 586.5p, Admiral, ahead 39p to 1512p, Centrica, up 4.2p to 324.9p, and Severn Trent, ahead 13p to 1301p.
The biggest Footsie fallers were Aggreko, down 83p to 1346p, Tullow Oil, off 59p to 1238p, Barclays, down 11p to 298p, and Antofagasta, off 34.5p to 977.5p.
15.55: Shares have been knocked by news from the US, where the US Commerce Department said durable goods orders only rose 0.3% last month, much worse than the 2.8% growth forecast.
That has pushed Wall Street's Dow Jones Industrial Average, which yesterday dipped below 10,000 for the first time since early July, down by just under 1% today.
The FTSE 100 has fallen steadily today. With the close in sight, the Footsie is 72.33 points lower at 5083.62.
13.15:
The FTSE 100 was 36.48 points lower at lunchtime. Some 70 of the 100 blue chips ahres are under water today.
Relief may come from Wall Street later today, where the Dow Jones is seen opening higher.
11.50:
The FTSE 100 has extended loss through this morning. Tullow Oil still leads the fallers (see the 10.15 update), down 71p at 1,226p.
Overall, the Footsie is 25.03 points worse off at 5130.92.
Ex-dividend factors will knocked 0.21 points off the FTSE 100 index today, with Eurasian Natural Resources and InterContinental Hotels both trading without their payout attractions.
10.15:
The FTSE 100 is lower today, dragged down by poor US housing data with Admiral gaining on strong results and Tullow Oil falling.
The Footsie largely held its nerve today after persistent global economic worries punished investors during a turbulent session yesterday.
After a fresh slump for markets in Asia overnight, the FTSE 100 Index fell in early trading – down 11.59 points at 5144.36. There were 35 of the 100 leading stocks in positive territory.
This followed its 2% slump at the worst point of trading on Tuesday after dismal housing data from the United States fuelled fears of a slowdown in global economic recovery.
The Dow Jones Industrial Average eventually closed 1.3% lower at 10,040 after falling below the 10,000 barrier at one stage.
The biggest rise in the FTSE 100 Index came from Admiral Group after the insurer reported a 21% rise in pre-tax profits to £126.9m in the first six months of the year. The figures were better than expected and resulted in shares rising 5% or 68p to 1541p.
Support services firm Serco was another blue-chip riser after its adjusted profits improved 19% to £110m.
The half-year figures were in line with expectations and led the company's shares to rise 21.5p to 581p, a gain of 4%.
Temporary power firm Aggreko, which also published results today, added 27p to 1456p.
Steepest faller this morning was Tullow Oil, down 75p, or 5.8%, at 1,222p. This was despite Tullow reporting a 3-fold increase in first-half profits to $89m, thanks to higher oil and gas prices, and said it had raised its production guidance for the year.
However, Tullow said work on its Ugandan fields would slow and a license extension would not be granted until a dispute between its partner, Heritage Oil, and the Ugandan government over tax payments was resolved.
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Land Rover unveil newest all-electric Range Rover SUV
- Mini unveil an electrified version of their popular Countryman
- Iconic Dodge Charger goes electric as company unveils its Daytona
- How to invest for income and growth: SAINTS' James Dow
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- Steve McQueen featured driving famous stunt car in 'The Hunter'
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Inventor Erno Rubik thought his Cube was so difficult...
- When will Gucci get its house in order? Fashion giant...
- Taxpayers could be on the hook for a multi-million-pound...
- Revitalised corner of Scotland that proves banking hubs...
- Takeover target Anglo American is forced to defend...
- FIDELITY SPECIAL VALUES: Best of British... fund that...
- FTSE 100 expected to be boosted as soon as next month...
- Coventry Building Society swimming with 'sharks' as it...
- MIDAS SHARE TIPS UPDATE: GlobalData proves worldwide...
- JEFF PRESTRIDGE: Finally... a tiny bright spot in the...
- FTSE 100 chiefs claim they are hard-up compared with the...
- CITY WHISPERS: City PR man Neil Bennett cries fowl after...
- Intermediate Capital Group snaps up leading legal...
- Is the UK stock market finally due its moment in the sun?...
- MIDAS SHARE TIPS: Premium income doubles and profits rise...
- It's 'high and buy' from FTSE 100: The more the index...
- Emeralds riddle of a bond from Cauta Capital that's far...
- Pearson's boss given a bloody nose as shareholders...