FTSE close: Tesco up; Fresnillo, BP down

By Ed Monk for Thisismoney.co.uk
Updated: 12:17 EDT, 12 April 2011

17.10 (close)

World markets suffered heavy declines today amid fresh fears over Japan's ongoing nuclear crisis and a lacklustre start to the US earnings season.

A slide in oil prices added to the pressure, with the FTSE 100 Index closing down 89 points at 5964.5 - a fall of 1.5%.

Markets were hit after Japan's nuclear safety agency raised the severity of the Fukushima nuclear plant crisis to the highest level on the seven-strong scale and the same rating as the Chernobyl incident in 1986.

Tokyo's Nikkei 225 index fell 1.7%, sparking heavy falls on both sides of the Atlantic.

Across Europe, France's Cac 40 and the Dax in Germany finished 1.5% and 1.4% lower respectively.

The Dow Jones Industrial Average on Wall Street dropped 1% in early trade as confidence was also impacted by results from Alcoa on Monday night as America's largest aluminium producer missed sales targets for the first quarter - a poor kick-off for US first quarter earnings.

Dire monthly sales figures from the British Retail Consortium and a cut to economic growth forecasts by the International Monetary Fund (IMF) added to the gloom.

There was some relief for investors in London after official figures showed an unexpected drop in inflation to 4% during March, from 4.4% in February.

While this reduced the chances that interest rates will have to rise soon, the pound weakened against the dollar and euro as a result.

Sterling fell to 1.63 dollars and 1.12 euros.

Silver miner Fresnillo topped the fallers board in London with a drop of 85p to 1576p, while a 3% drop in crude oil prices - to just over 106 dollars a barrel - sent energy stocks lower.

Oil giant BP fell 13.5p to 461.4p, while Royal Dutch Shell eased 62.5p to 2208p.

Investors took the latest retail figures in their stride as Tesco rose 2.9p to 398.1p and Sainsbury's added 1.1p to 338p in the FTSE 100 Index.

And three retail stocks with figures out later in the week made headway as WH Smith added 2.8p to 453.6p, Debenhams lifted 0.6p to 64.9p and JD Sports Fashion rose 36.5p to 901.5p.

Elsewhere in the FTSE 250 Index, National Express shares were 5% higher after it emerged activist shareholder Elliott Advisers had won the support of the transport company's second-biggest shareholder for its plans to install three new directors.

The move is significant as Elliott, which is National's biggest shareholder, is pressing the bus and coach operator to consider a merger and pursue a more aggressive growth strategy.

Shares were 10.8p higher at 250.1p, while potential merger partner Stagecoach edged 0.8p lower to 213.6p.

The biggest Footsie risers were Carnival up 110p up 2476p, International Consolidated Airlines Group ahead 9.6p to 225.1p, Whitbread up 17p at 1663p and TUI Travel up 2.3p at 232.4p.

The biggest Footsie fallers were Fresnillo down 85p to 1576p, Antofagasta off 74p to 1411p, Kazakhmys down 74p to 1419p and Anglo American down 152.5p to 3187p.

16.00: The Dow Jones has extended losses amid heavy falls by financial stocks such as Bank of America and JPMorgan Chase ahead of their results later this week.

The US index is down 145.1 points at 12,235.

Back in the UK, the FTSE 100 is off 81.6 points at 5,971.8.

We have an update on the shareholder rebellion at 123-year-old Scottish investment company Alliance Trust, which is rallying support with a staunch defence of its record and latest annual results. Read more here.

Alliance's stock is down 2p at 373.1p.

15.00:

The Dow has indeed fallen - mimicking the London Footsie and Tokyo's Nikkei 225 - opening 64.6 (0.5%) down at 12,316.5 points.

Markets have slipped across Europe too, with France's Cac 40 and the Dax in Germany off 1.2%.

US confidence was impacted after its largest aluminium producer Alcoa missed sales targets for the first quarter.

London's leading shares are now down 75.7 points at 5,977.7.

And in the second tier, National Express shares are up 11.7p (4.9%) to 251p as activist shareholder Elliott Advisers is confident of support for its plans to install three new directors. Elliott wants National Express to be more aggresive in its growth strategy. More on this here.

Potential merger partner Stagecoach retreated 0.4p (0.2%) to 212.4p.

14.25: Shares in troubled care home provider Southern Cross are up 0.6p at 10.25p after chairman Ray Miles passed the reins to a board colleague.

He said ex-Lazard investment banker Christoper Fisher had 'more experience' of the intense financial restructuring the firm is undergoing at present. We have more on the company's recent travails here.

The FTSE 100 is down 62.8 points at 5,990.6.

14.15:

Still nothing to cheer for the Footsie.

Having dropped 40 points or so first thing, the FTSE 100 has bumped lower all day and is now 60.96 points off at 5992.48.

13.00:

Looking forward, the Dow Jones is headed for a fall when markets open on Wall Street later.

The futures markets are indicating an 0.5% fall for the Dow as US shares take their hit from the worsened picture in Japan.

Back in London, the FTSE 100 is 58.36 points lower at 5995.08.

12.00:

We have further details of Punch Taverns' first half results.

The pub operator has suffered a further slide in profits ahead of its move to split the company into two this summer and its shares are down 6% or 4.7p at 74.8p.

Brent crude is trading just below $123 a barrel today after topping £124 yesterday.

Gold was fixed this morning at $1,461.25 an ounce compared with $1,468 at the previous close.

Futures trading points to a lower open on the Dow Jones later amid gloom over nuclear developments in Japan and concern about the downbeat start to the first quarter earnings season.

The FTSE 100 is 54.4 points down at 5,999.

10.35:

Here's more on that shock fall in inflation.

Analysts had expected consumer prices index inflation to remain at the 29-month high of 4.4% reached in February, but the Office for National Statistics said that supermarket sales and falling groceries prices in March dragged down the overall rate, to 4.0%.

That means the pressure on the Bank of England to raise interest rates has eased. The Bank, principally through the words of governor Mervyn King, has insisted that price rises would come down as the economy slows under the weight of spending cuts, meaning there is no case for higher rates.

Today's figures may galvanise the governor in that view but critics would be entitled to point out that Mr King himself had predicted further rises in inflation throughout the year, peaking at or above 5%.

The propesct of low rates for longer should help shares, but the inflation data has done nothing for the Footsie, which is now 53.65 points lower at 5999.79.

09.35:

The FTSE 100 fell today, following global markets lower on renewed fears about Japan's nuclear crisis with inflation data adding to uncertainty as Punch Taverns reported.

The FTSE 100 fell 39.18 points to 6014.26 in early trade this morning. Fresh worries about Japan's nuclear crisis and a disappointing start to the US results season triggered the losses.

Tokyo's Nikkei 225 index fell 1.6% after Japan's nuclear safety agency raised the severity of the Fukushima nuclear plant crisis to the highest level on the scale and the same rating as the Chernobyl incident in 1986.

Confidence was also impacted by results from Alcoa last night as America's largest aluminium producer missed sales targets for the first quarter.

The uncertainty over global economic prospects dragged UK-listed mining stocks lower.

Ferrexpo, 29.2p down at 445.8p, Kazakhmys, 56p down at 1,437p, Eurasian Natural Resources, 2p down at 939.5p, Fresnillo, 49p down at 1,612p, and Antofagasta, 43 lower at 1,442p, made it a clean sweep for miners on the list of heaviest fallers this morning.

UK inflation data has just been released, revealing an unexpected fall in the Consumer Price Index. Price rises fell from 4.4% to 4.0% by the official measure, according to the Office for National Statistics.

Check back for a full report on the inflation date.

Dire monthly sales figures from the British Retail Consortium and a cut to economic growth forecasts by the IMF added to the gloom.

Manoj Ladwa, senior trader at ETX Capital, said: 'The markets have been looking for a reason to sell off and seem to have finally found it today.'

Not even Punch Tavern could raise a glass. The owner of Chef & Brewer and Fayre & Square pubs reported a further slump in profits and announced more details of its plans to split the business into two as part of a radical restructure.

Punch Taverns, which has more than 6,000 pubs, said underlying profits fell 8.4% to £206m in the six months to March 5 as its leased division saw a 7% decline in like-for-like net income.

Punch shares dipped 1.45p, or 1.8%, to 78.05p.

Outside the top flight, National Express shares were 3% higher after Sky News reported that activist shareholder Elliott Advisers had won the support of the transport company's second-biggest shareholder for its plans to install three new directors.

The move is significant as Elliott is pressing National Express to consider a merger and pursue a more aggressive growth strategy.

Shares were 7.75p higher at 247.05p, while potential merger partner Stagecoach lifted 2.3p to 215.1p.