The Chancellor’s choice of Bank of England governor failed to liven markets today as fears over the approaching fiscal cliff in the US continued to trouble investors.
The FTSE 100 Index was 32.42 points lower at 5,786.72 as US markets reopened after Thanksgiving looking for a political solution to the debt crisis.
The banking sector came under pressure as Royal Bank of Scotland was off 8p at 285.1p and Lloyds Banking Group lost 1.3p at 45.1p.
Barclays fared the worst however, sinking to the bottom of the FTSE 100 Index after Qatar Holdings said it would cash in on its remaining 379million units of Barclays warrants – instruments that convert into shares. The bank’s stock dropped 13.7p to 240.5p.
Investors were encouraged after defence giant BAE Systems’ UK chief executive said it could close one of its major shipyards and a decision was expected by the end of the year. Shares jumped 1.7p to 312p.
A number of defensive stocks were also higher, with British American Tobacco up 28p at £32.52 and Imperial Tobacco adding 11p to £24.95.
The biggest FTSE 100 risers included International Consolidated Airlines Group up 1.4p at 170.4p and Resolution Limited up 1.1p at 234.9p.
Among the biggest FTSE 100 fallers was Kazakhmys, off 14p at 679.5p.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that risers included Bridge Energy, which closed 3.3% higher at 109.5p, while Parkmead added 0.88% to 14.125p.
Fallers included AMEC, which softened 1.35% to £10.22, and BP, which closed 0.95% down at 431.35p.