FTSE close: Miners, Essar up; Banks down

By Reuters
Updated: 12:37 EDT, 30 November 2010

17.30 (close)

Rally: Shares rose this morning

London market, which tumbled 2% yesterday on worries over the potential for further bail-outs, had stood 10 points higher at lunchtime, but it slipped back into the red in later trading, to finish down 23 points or 0.4% at 5,528.3.

Banking stocks were hit as investors continued to worry about the financial stability of Ireland, Spain and Portugal, with Barclays, which has high exposure to Spain, seeing its shares sink 6.8p to 256.15p.

The FTSE 250 was even worse hit, dropping 81.9 to 10,607.7, while Germany's DAX and the CAC-40 in France both also lost earlier gains to finish down 0.1% and 0.8% respectively.

The euro lost ground against the pound, dropping by 0.7% to leave a pound worth 1.19 euros.

Concerns about eurozone debt were offset by the prospect of positive US data to be released later in the session, including figures on US consumer confidence and manufacturing.

Rising commodity prices helped mining stocks recover from some of yesterday's losses, with Rio Tinto up 37p at 4079p, BHP Billiton ahead 19.5p at 2285p and Lonmin gaining 10p to 1693p.

Energy stocks also benefited from stronger commodities, with Essar Energy topping the risers board, up 20.5p at 522p, and Cairn Energy up 8.9p at 386.5p.

But banks continued to suffer in the wake of the Irish crisis, with Lloyds Banking Group down 0.1p at 60.4p and Royal Bank of Scotland down 0.9p to 37.6p.

In corporate news, shares in school trips and hotel breaks firm Holidaybreak jumped 7% after it posted a 9% rise in full-year profits and announced the acquisition of 50% of student accommodation firm Meininger.

The deal is part of plans to make Holidaybreak the leading brand in the European school trips market. Shares rose 20p to 290p.

Elsewhere in the travel industry, corporate specialist Hogg Robinson saw its shares fall 0.7p to 34p after it raised its profit hopes for the full year.

The Basingstoke-based firm, which provides business travel services to clients worldwide including Rolls-Royce, Volkswagen and GlaxoSmithKline, said spending and bookings were both up 18% in the six months to September 30.

Topps Tiles shares rose after the tile and wood flooring specialist reinstated its dividend and lifted its full-year profits. With the company also reporting a rise in like-for-like sales of 3.2% in the first seven weeks of its new financial year, Topps shares improved 1p to 60p.

Investors were unimpressed by reports that housebuilder Taylor Wimpey was moving closer to auctioning off its North American arm Taylor Morrison. Shares were down 0.5p to 23.8p.

The biggest FTSE 100 risers were Essar Energy up 20.5p at 522p, Cairn Energy ahead 8.9p at 386.5p, Weir Group up 37p at 1,740p, and Carnival ahead 53p at 2,622.

The biggest FTSE 100 fallers were Resolution down 8.3p at 211.3p, Standard Life off 7.8p at 201.2, Legal & General down 2.6p at 91.4p, and Barclays off 6.8p at 256.15p.

15.15: Over on Wall Street, the Dow Jones Industrial Average has opened lower and is now 39.5 points down in early trading there.

In London, the Footsie remains underwater - 12.4 points lower at 5538.52.

13.40:

The FTSE 100 is headed lower and the footsie is now 22.22 points lower at 5528.73.

12.10:

A lunchtime update - the FTSE 100 has lurched this morning but is 4.41 points higher at 5555.36.

The main focus in the markets is once again on Europe's debt crisis and concerns that Portugal - or even Spain - will follow Ireland and seek a substantial financial bailout from the European Union.

But these concerns are being offset by the prospect of positive US data to be released later in the session, including figures on US consumer confidence and manufacturing.

Rising commodity prices have helped mining stocks recover from some of yesterday's losses, with Rio Tinto up 37p at 4080p, BHP Billiton ahead 19.5p at 2285p and Lonmin gaining 11p to 1694p.

Energy stocks also benefited from stronger commodities, with Cairn Energy topping the risers board, up 6.4p at 384p, and BG Group adding 10.5p at 1179p.

Banks, which have been hit hard in the wake of the Irish crisis, were also higher, with Lloyds up 0.5p at 61p and Royal Bank of Scotland ahead 0.2p to 38.7p.

In corporate news, shares in school trips and hotel breaks firm Holidaybreak jumped 7% after it posted a 9% rise in full-year profits and announced the acquisition of 50% of student accommodation firm Meininger.

The deal is part of plans to make Holidaybreak the leading brand in the European school trips market. Shares rose 18.25p to 288.25p.

Elsewhere in the travel industry, corporate specialist Hogg Robinson saw its shares lift more than 1% after it raised its profit hopes for the full year.

The Basingstoke-based firm, which provides business travel services to clients worldwide including Rolls-Royce, Volkswagen and GlaxoSmithKline, said spending and bookings were both up 18% in the six months to September 30. Shares were up 0.5p at 35.2p.

Topps Tiles shares rose 2% after the tile and wood flooring specialist reinstated its dividend and lifted its full-year profits. With the company also reporting a rise in like-for-like sales of 3.2% in the first seven weeks of its new financial year, Topps shares improved 1.25p to 58.9p.

Investors reacted cautiously to reports that housebuilder Taylor Wimpey was moving closer to auctioning off its North American arm Taylor Morrison. Shares edged up 0.1p to 24.4p.

10.30

A late rally for Wall Street ensured London stocks steadied today after a turbulent start to the week driven by European debt fears.

The FTSE 100, which tumbled 2% yesterday on worries over the potential for further bail-outs, recovered its poise to stand 11 points higher at 5,562. Analysts remain cautious, however.

'Sentiment is very fragile and the relief rally is half-hearted as there is concern that the debt problems could move to Spain which is the fourth biggest economy in the euro zone,' said Richard Hunter, head of equities at Hargreaves Lansdown.

But a positive mood was seeded by the performance of US stocks following London's close yesterday, with the Dow Jones finishing just 0.3% lower.

Mining stocks put back some of yesterday's losses, while telecoms group BT topped the risers board with a gain of 2.3p (1.4%) to 171.5p.

Lloyds was up 0.6p at 61.2p and Royal Bank of Scotland ahead 0.2p to 38.7p, but Barclays lost 4.9p (1.75%) to 258p.

In corporate news, shares in school trips and hotel breaks firm Holidaybreak jumped 7% after it posted a 9% rise in full-year profits and announced the acquisition of 50% of student accommodation firm Meininger. The deal is part of plans to make Holidaybreak the leading brand in the European school trips market. Shares rose 18.2p to 288.2p.

Topps Tiles shares rose 2% after the tile and wood flooring specialist reinstated its dividend and lifted its full-year profits. With the company also reporting a rise in like-for-like sales of 3.2% in the first seven weeks of its new financial year, Topps shares improved 1.25p to 58.9p.

Engineer Invensys gained 4.6p (1.4%) to 323.5p with traders citing ongoing mergers and aquisitions talk after news that Swiss engineering group ABB was to buy US industrial motors firm Baldor Electric Co for $3.1bn.

British consumer confidence weakened more than expected in November when people were the most downbeat about the prospects for their personal finances in almost two years, a survey found.

The GfK/NOP consumer confidence barometer fell to -21 in November from -19 in October, below a forecast for a reading of -20 and the weakest reading since July.

Bearish signals on the global economy came out of Asia too.

Factories in Japan and South Korea cut output in October, adding to evidence of an Asia-wide slowdown and boding ill for the rest of the world which has relied on the region to keep the global economy humming.

Later, investors' focus will turn to US house prices, Chicago PMI readings and consumer confidence data, giving an indication of the strength of the recovery in the world's biggest economy. Technical indicators point to further weakness for the index, analysts said.