Two successful Italian debt auctions failed to ease eurozone debt fears today as London’s leading shares index slipped back into the red in an uncertain session.
Initial gains for European markets were reversed when Italy’s implied 10-year borrowing costs climbed back above 7% in the afternoon session ahead of a longer-term bond auction tomorrow. The FTSE 100 Index fell 5.3 points to 5,507.4
Amid thin volumes, the performance of the leading shares index was hampered by heavily-weighted banking stocks, which were among the biggest fallers following their recent run of gains.
Lloyds was down 0.7p at 25p, Barclays was off 6.8p at 172.2p, and Royal Bank of Scotland was 0.7p lower at 19.9p.
In the retail sector, spirits were lifted by initial signs that shoppers abandoned some of their recent spending caution in the post-Christmas sales.
Supermarket group Tesco was 8.8p higher at 399.8p, but B&Q owner Kingfisher lost earlier gains to stand flat 246p.
In the second tier, Argos and Homebase owner Home Retail Group was up 4p at 86.8p, Halfords was 7.7p higher at 296.4p and Debenhams rose 0.9p to 57.5p.
Meanwhile, shares in bus maker Optare were up by a third after rival Alexander Dennis said it has requested information so it can consider whether to make an offer for the business. Shares surged 0.15p to 0.6p.
The biggest Footsie risers included Intertek up 57p at £19.97, Intercontinental Hotels ahead 28p at £11.48 and British American Tobacco ahead 59p at 3,057.5p.
The biggest Footsie fallers included Evraz down 19.1p at 373.3p.
David Barclay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that Aberdeen Asset Management added 2.1% to close the day at 209.85p, FirstGroup rose 1.41% to 338.8p and BG Group gained 0.93% to finish at £13.61.
On the fallers board, Amec declined 1.77% to 886.5p and Enquest closed 0.94% weaker at 89.425p.