Sluggish economic data from the world’s biggest economy offset gains by buoyant banking stocks today, sending the FTSE 100 Index into the red and continuing a turbulent performance by the top tier.
The Footsie closed down 5.6 points at 6,280.6 after a promising start, driven by hopes over the creation of a “bad bank” for toxic loans, was dashed by disappointing housing and company data from the US.
Banks were also lifted by the UK Government’s launch late on Friday of a legal challenge to a European financial transactions tax, which it fears could have a damaging impact on the City.
That lifted Lloyds Banking Group 1.6p to 49.1p, a 3.5% gain. Royal Bank of Scotland was 5.7p higher at 286.2p and Barclays was 3.15p ahead at 289.5p.
Randgold Resources was the top Footsie riser after it reported encouraging progress with a gold project in the Democratic Republic of Congo. Its shares were £2.06 higher at £48.70, a 4.4% gain.
ITV also climbed the leaderboard after revealing a deal worth at least £18million to buy TV production firm The Garden. The shares were up 0.8%, or 1.1p at 124.3p.
Household products group Reckitt Benckiser fell 1.3%, or 63p to £46.46 despite a heavy colds and flu season boosting first quarter trading at the Nurofen, Strepsils and Dettol owner
Outside the top flight, Betfair continued to rise – up 4.2%, or 33.5p to 838.5p – despite the company’s rejection of a takeover proposal worth £910million from private equity firm CVC Capital Partners.
Mark Ireland, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted IndigoVision up 1.7% at £3.55 and Standard Life rising 1.4% to 338.9p, as well as Xcite Energy down 4.5% at 102.4p, Amec losing 3.4% to 965.5p and Johnston Press off 3.2% at 15.4p.