FTSE close: Wood group leads engineer gains
17.05 (close)
Monday: Eyes will be on economy data later thhis week.
The London market struggled to make progress today as eurozone debt concerns weighed on the minds of investors.
The FTSE 100 Index closed 2.8 points lower at 6060.1 after data revealed a decline in Portugal's gross domestic product and fears emerged over the possible break up of a German bank.
Traders were edgy as the White House revealed its budget proposal for 2012, with President Barack Obama confirming a 3.73 trillion US dollar (£2.3 trillion) package. Wall Street's Dow Jones Industrial Average dipped 0.1% following the announcement.
Investor confidence was shaken by the US Government's projected deficit - expecting it to spike to 1.65 trillion US dollars (£1 trillion) in the current fiscal year.
The eurozone woes weakened the euro, which was down against the pound at 1.18, while sterling was also up against the US dollar at 1.60.
In the UK, bankers were weighed down by growing speculation that German lender WestLB could be facing a break up as it prepares to meet a European Commission deadline for restructuring tomorrow and by a report revealing 0.3% decline in Portugal's gross domestic product in the final quarter of 2010.
Lloyds Banking Group was down 1.1p at 65.7p, Barclays off 0.4p at 310.8p and HSBC 6.1p lower at 707.9p.
Engineering stocks enjoyed a good session after oil and services support firm Wood Group announced it had sold its well support arm, which makes electric submersible pumps used to maximise oil production, to General Electric (GE) for $2.8bn (£1.75bn).
The Wood deal prompted gains for engineering firms Weir Group and Invensys, which were up 68p at 1763p and 11.6p at 352.5p respectively, and topped the Footsie risers board.
Meanwhile, Aberdeen-based Wood surged more than 13% on the FTSE 250 Index, up 79.5p at 652p, after announcing its deal with GE, which will see at least £1bn of the proceeds go to shareholders.
With little in the way of corporate results in the UK, the market was looking ahead to economic data due to be released later this week, including inflation figures from the Office for National Statistics tomorrow and the Bank of England's quarterly inflation report on Wednesday.
Elsewhere, Rolls-Royce edged ahead 3p to 654.5p in the FTSE 100 after the engines giant unveiled a long-term services deal with airline Emirates worth $2.2bn (£1.4bn).
Speedy Hire reported that its tool and equipment hire business returned to revenues growth in the final quarter of 2010, despite the contraction in the construction industry.
Shares were up nearly 2% or 0.5p at 30p as it said it could return to underlying profit in the six months to the end of March if it trades well in the next few weeks.
The biggest Footsie risers were ARM up 40p at 651p, Weir Group ahead 68p at 1763p, Invensys up 11.6p at 352.5p and African Barrick Gold ahead 15p at 531p.
The biggest Footsie fallers were Resolution down 7.9p at 265.1p, Lloyds off 1.1p at 65.7p, International Consolidated Airlines down 4p at 245p and RDS off 31p at 2093p.
15.20: US shares have falen in early trade on Wall Street.
The Dowe Jones is 1619 points lower at 12,257.07 after half an hour.
The FTSE 100 is now 6.62 points down at 6056.28.
14.20:
The markets are about to open on Wall Street, and spreadbetters expect to see the Dow Jones fall.
Back in London, the FTSE 100 is 410.97 points off at 6051.93.
12.40:
The FTSE 100 is 16.7 points lower at 6046.2, led downwards by banking stocks which were affected by a decline in Portugal's GDP and fears that a German bank may be broken up.
The FTSE 100 has lost its earlier gains, with banks weighed down by growing speculation that German lender WestLB could be facing a break up as it prepares to meet a European Commission deadline for restructuring tomorrow and by news that Portugal's GDP declined by 0.3% in the final quarter of 2010.
Lloyds was among the biggest fallers this morning, down nearly 2% - or 1p to 65.8p. Barclays was also down 1%, or 2.8p to 308.2p.
11.00:
The FTSE 100 has sliped into the red, 3.37 points lower at 6059.53.
That reverses the early gains made after UK oil and gas services firm Wood's Group promised to deliver at least £1bn to shareholders today after sealing a major deal with General Electric.
Wood's Group, listed in the FTSE 250, saw its ahres leap 13.6%, and the deal proved the staring gun for rival engineering shares.
In currency today, the pound at 10am was $1.6021 compared to $1.5986 at the previous close. Against the euro, the pound was €1.1889 compared to €1.1827 at the previous close.
09.55:
The FTSE 100 was pushed higher today thanks to gains for engineering firms after news of a big US purchase in the sector.
A major deal for UK oil and gas services firm Wood Group sparked gains for engineering companies across the London market today.
Wood Group sold its well support arm, which makes electric submersible pumps used to maximise oil production, to General Electric (GE) for $2.8bn.
The FTSE 100 Index edged ahead 18.2 points to 6081.3, led by gains of more than 4% by engineering firms Weir Group and Invensys, which were up 81p at 1776p and 15p at 356p respectively.
Meanwhile, Aberdeen-based Wood surged nearly 12% on the second-tier, up 68p at 640.5p, after announcing its deal with GE, which will see at least £1bn of the proceeds go to shareholders.
The positive start followed a strong session in Asia, as the resignation of Egypt's president Hosni Mubarak eased worries over political instability in the Middle East.
Tokyo's Nikkei 225 climbed 0.8%, Hong Kong's Hang Seng Index added 1.1% and China's Shanghai Composite Index was up 1.8%.
With little in the way of corporate results in the UK, the market is likely to look ahead to economic data released later this week, including inflation figures from the Office for National Statistics tomorrow and the Bank of England's quarterly inflation report on Wednesday.
Elsewhere, Rolls Royce edged ahead 0.5p to 658p in the FTSE 100 after the engines giant unveiled a long-term services deal with airline Emirates worth $2.2bn (£1.4bn).
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