London’s leading shares index lost its momentum today as a stronger dollar hit the heavily-weighted resources sector and dragged the market into the red.
The FTSE 100 Index closed 10.5 points lower at 5,945.4, putting an end to hopes of the top flight breaking the 6,000 mark after spending most of the day ahead.
Fears that the US Federal Reserve’s upbeat assessment of the economy would translate in a lack of support from the central bank hit investors and triggered a surge in the value of the US dollar, a traditional safe-haven retreat.
This in turn hit FTSE-listed mining stocks, as the dollar is the currency of choice for the sector, with Kazakhmys down 4% or 42.5p at 943.5p, Vedanta Resources off 39p at £13.91 and BHP Billiton sliding 46.5p at 2,000.5p.
UK-listed banks were boosted by the events in the US however as Barclays added 9.3p to 248.8p, Lloyds Banking Group improved 0.8p to 35.5p and Royal Bank of Scotland lifted 0.8p to 26.6p.
Insurer Legal & General was top of the blue-chip risers board, climbing 7% or 9p to 134.3p after it posted a 5% rise in operating profits and a bigger-than-expected 35% hike in its dividend to 6.4p.
There were also healthy gains for retail stocks after broker JPMorgan Cazenove said it was more optimistic about the sector because of improving signs for the UK economy. Marks & Spencer was 8.7p higher at 370.8p and Next lifted 34p to £28.27.
The biggest Footsie risers included also included Resolution, ahead 14.1p at 283.2p
Among the biggest Footsie fallers were Randgold Resources off 260p at £68.50 and Vodafone off 4.1p at 166.7p.
Alan MacPhee, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Parkmead rose 2.47% to close at 20.75p, with BG Group rising 1.48% to £15.41.
Among the laggards, EnQuest fell 1.77% to 127.55p and Faroe Petroleum giving up 1.25% to 157.875p.