FTSE close: FTSE slump; HSBC down, 3i up

 

17.15 (close)

Worried traders at the Tokyo Stock exchange

Japan has been dominating the market news again today, with the global stock market tumbling in the wake of a 'perfect storm.'

Beyond Japan, HSBC closed down 23.5p to 622.5p and Barclays, which has a high level of exposure to the Iberian peninsula, was down 10p to 282p.

While the civil war in Libya rumbles on, there were fears that the crisis could spread to Bahrain after the Gulf state declared a state of emergency and Britons were urged to leave.

Brent crude oil prices, which have eased in recent days, rose 2% to 111 US dollars on fears that production could be disrupted.

In the UK, news that the unemployment rate has increased to more than 2.5 million - its highest level for 18 years - added to the malaise.

This put the pound under pressure, easing back to 1.60 US dollars, although it held firm against the euro as Portugal's downgrade hit the single currency.

Attention was also focused on the retail sector after results from French Connection and Greggs and a broker upgrade for Primark owner Associated British Foods boosted shares.

AB Foods rose 9.5p to 949.5p after Credit Suisse changed it rating to outperform and said rising prices were set to benefit the company's sugar operations.

French Connection, which made profits from continuing operations of £8.9 million in the year to January 31, rose 4.3p to 124p, while bakery chain Greggs lifted 0.4p to 466.3p after reporting strong profits and a positive start to the new financial year.

The biggest Footsie risers were 3i up 6.3p to 291p, Associated British Foods ahead 9.5p to 949.5p, Randgold Resources up 35p to 4460p and Scottish & Southern Energy up 7p to 1196p.

The biggest Footsie fallers were Standard Life down 11.2p to 199.5p, Invensys off 13.2p to 325p, HSBC down 23.5p to 622.5p and International Consolidated Airlines down 7.8p to 212.9p.

15.00: Pub firm Mitchells & Butlers is undergoing fresh upheaval as chief Adam Fowle steps down - prompting surprise and speculation in the City.

He resigned 'by mutual consent' two years into his job, hot on the heels of chairman John Lovering who announced his departure in January after just a year with the company.

M&B shares fell 3% or 9.5p to 290p. We have more on that story here.

The Dow is still ailing, down 46.3 points at 11,809.1. As well as the worrying developments overseas, US investors have been shaken by dismal housing start data which revealed the biggest monthly drop in new construction in 27 years.

The FTSE 100 is 17.8 points lower at 5,677.5.

14.25:

Over on Wall Street, US shares have fallen on opening.

The Dow Jones industrial average fell 55.78 points to 11,799.64.

In London, the Footsie is doing its best to claw back losses from this morning and is now 23.05 points lower at 5672.23.

13.05:

A lunchtime update – the Footsie continues to labour, down 34.06 points at 5661.22, after Bahrain replaced Japan as the focus of traders' worries.

The top flight has also been hit by grim news as more debt worries for Portugal and higher unemployment rates in the UK weighed on sentiment.

It made slight gains in early trading after a 6% rebound for Japan's Nikkei 225 but any progress was short-lived as the FTSE 100 slipped.

News that Moody's has cut Portugal's debt rating has caused heavyweight UK banks to slump.

HSBC is down 17.4p to 628.6p and Barclays, which has a high level of exposure to the Iberian peninsula, is down 6.7p to 285.3p.

While the civil war in Libya rumbles on, there were fears that the crisis could spread to Bahrain after the Gulf state declared a state of emergency and Britons were urged to leave.

Brent crude prices, which have eased in recent days, rose 2% to $111 on fears that production could be disrupted.

Shares in Intercontinental Hotels are down 2% or 23.5p to 1231.5p after the company revealed its chief executive Andrew Cosslett is to step down.

11.40:

The Footsie has slipped as the morning has gone on and is now 40.22 points lower at 5655.06.

In economy news today, unemployment has risen again and conomists expect the jobs picture to worsen this year.

09.40:

The FTSE 100 held firm today after a bounce for Japanese shares, with retailers on the up after positive broker comments on AB Foods and decent results at French Connection and Greggs.

London's FTSE 100 Index steadied today after a much-needed recovery for Japanese stocks helped to calm the nerves of investors worldwide.

The Footsie moved in and out of positive territory in early trading and by 9.30 was 3.9 points lower at 5691.4.

The Nikkei 225 rallied nearly 6% overnight after panic selling in the wake of the country's earthquake, tsunami and nuclear crisis sent Tokyo's benchmark index to a two-year low on Tuesday.

Japanese car makers and financial companies were the main beneficiaries as investors went in search of cheap-looking stocks following the sell-off.

Attention was focused on the retail sector after results from French Connection and Greggs and a broker upgrade for Primark owner Associated British Foods.

AB Foods topped the FTSE 100 risers board with a rise of 4% or 37.25p to 977.25p after Credit Suisse changed it rating to outperform and said rising prices were set to benefit the company's sugar operations.

Greggs and French Connection were both rewarded with higher share prices after posting improved full-year results.

The fashion business, which made profits from continuing operations of £8.9m in the year to January 31, rose 1.75p to 121.5p, while bakery chain Greggs jumped 16.55p to 482.45p after reporting strong profits and a positive start to the new financial year.

The pound at 9am was $1.6094 compared to $1.6098 at the previous close. Against the euro the pound was €1.1525 compared to €1.1510 at the previous close.

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