More positive signs from the US failed to lift London’s leading shares index today as fears over the eurozone and a credit agency warning to banks rattled investors.
The FTSE 100 Index closed 6.8 points lower at 5,885.4 despite gains on US markets.
Heavily-weighted banks suffered falls of up to 2% in London after Moody’s placed the credit ratings of 122 lenders on review, while reports of further dithering in Greece over the next phase of its £110billion bail-out fund also hit sentiment.
HSBC, Royal Bank of Scotland and Barclays, who were all named in the Moody’s review, saw shares fall 2.3p to 573.6p, 0.2p to 26.8p and 3.3p to 244.9p respectively, while Lloyds Banking Group dropped 0.5p to 34.4p.
BAE was among the biggest top flight losers – down 7.8p to 325.2p – after it said sales fell 14% to £19.2billion in 2011 and warned there was little likelihood of an improvement this year.
BP was up 0.2p at 487.6p after its fall on Wednesday. It and other energy firms were boosted by reports that Iran is threatening to stop supplying oil to some western countries, which would lift oil prices further.
Primark owner Associated British Foods was among the biggest risers after an upgrade from Morgan Stanley, which predicted the budget retail chain would successfully expand in Europe despite the financial crisis. Shares rose 10p to £12.28.
But B&Q owner Kingfisher was on the slide – ell by 0.9p to £2.78 – after it highlighted continued sales pressure within its UK and Ireland business.
The biggest Footsie risers were Reed Elsevier up 15.5p at 549.5p, Sainsbury’s ahead 5.9p at £2.96, Imperial Tobacco up 43p at £24.92 and Wolseley ahead 33p at £23.55.
BAE was joined among the biggest fallers by Evraz down 15.5p at 420.8p, Polymetal International off 37p at £10.75 and Randgold Resources down £1.75 at £69.80.
Alan MacPhee, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted Xcite Energy surging 26.92% to 164.625p and Cairn Energy adding 0.9% to 347.5p.
Wood Group dropped 3.33% to 696.25p, STV Group lost 2.61% to £1.10 and AG Barr fell 1.72% to 1212.5p.