FTSE 100 close: M&S down, Smiths up
The London market followed Wall Street shares lower today despite better news on US GDP and the global economy.
The FTSE 100 Index was treading water until mid-afternoon, coping with a 2% slide for high street retailer Marks & Spencer.
But sharp falls on Wall St dragged the FTSE 100 lower, so that the blue chip index stood 63.48 points lower at 5096.24. It closed down 25.82 points at 5133.9.
On Wall Street, the Dow Jones Industrial Average did open higher, before falling sharply to sit 109.58 points lower on the day at 9,632.62.
The falls came despite better economic newsflow today. A final reading of US GDP data from the second quarter of this year by the US Commerce Department showed that the world's largest economy shrank by 0.7% on an annual basis, rather than the 1% reported last month.
The revised fall was way below what economists had feared. A Reuters poll of analysts put the Q2 fall at 1.2%.
Meanwhile, the International Monetary Fund reduced its estimate of likely losses from the financial crisis in the three years to 2010 - by $600bn to $3.4 trillion (£372bn to £2.1 trillion) - and Germany's posted a drop in its rate of unemployment.
In corporate news, Marks & Spencer took a tumble as news of improving sales was offset by warnings of tougher times ahead. Shares in the retailer fell 14.7p to 360.1p.
Elsewhere, a mix of well-received trading updates and broker notes could not stem the losses on the London market.
Hedge fund firm Man Group powered to the top of the risers board with an 8% increase - or 25.8p to 333.9p - as it reported an increase in funds under management and improving investor sentiment.
Engineering group Smiths was also among the biggest risers, up 54p to 892p on stronger recent orders, although pre-tax profits fell 2% in the 12 months to July 31.
Insurers were also on the front foot, with Legal & General leading the way following a broker upgrade and continued takeover speculation. Shares rose 5.05p to 87.8p.
Aviva was up 16.9p to 448.1p, while Standard Life added 5.8p to 219p.
But M&S dipped 12.7p to 362.1p after it predicted consumers would come under pressure from rising taxes and unemployment in 2010.
Fashion chain Next was also on the fallers board - off 58p to 58p - after the retailer's comments, while Argos owner Home Retail Group shed 8.1p to 271.9p.
Thomas Cook and First Choice and Thomson owner TUI Travel vied for top spot on the fallers board - with declines of 8.5p to 232.3p and 11.4p to 254.6p respectively.
The declines came after yesterday's statement from TUI that winter sales were down 13%, while Thomas Cook's latest update was given a lukewarm reception despite a strong finish to summer trading.
Recruitment firm Hays posted one of the biggest declines in the FTSE 250 Index after the Office of Fair Trading issued it with a fine of £30.4m for its involvement in a cartel that blocked a new competitor from supplying labour to building firms and also set fee rates to charge certain builders.
Shares fell 4.6p to 104p, a drop of 4.24%.
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