London’s leading shares index struggled to find direction today as downbeat housing data in both China and the US saw the recent optimistic mood stutter.
After gaining around 1% last week as hopes of a sustained economic recovery in the United States and an easing in the eurozone crisis boosted traders’ confidence, the FTSE 100 Index closed 4.5 points lower at 5,961.1 today.
There was a mixed session for financial stocks, with Lloyds Banking Group among the fallers amid fears its deal to sell 632 branches to the Co-op would be stymied by regulatory concerns over the running of the enlarged business.
Lloyds shares were 0.2p lower at 37.3p, while other fallers included HSBC, which dropped 2.6p to 577.8p, and Barclays after a decline of 2.7p to 253p. However, Royal Bank of Scotland bucked the trend by climbing 1p to 29.2p.
In the telecommunications sector, Vodafone rose 1p to 167.4p amid speculation it stands to gain a £1billion tax benefit if it beats off competition from Tata Communications and pulls off a deal for Cable & Wireless Worldwide.
BT shares were 1.8p higher at 217.4p after reports the firm was preparing to put up to £1.5billion into its pension fund in order to tackle a huge shortfall in the scheme.
The biggest Footsie risers included Resolution ahead 4.7p at 283.5p, Antofagasta up 17p at £12.46 and Hammerson ahead 5p at 430p.
The biggest Footsie fallers were Croda International down 67p at £21.71, CRH off 30p at £13.79, National Grid down 12p at 632p and IMI off 18p at £10.04.
David Barclay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Johnston Press adding 4.34% at 7.7p and Parkmead Group closed 1.85% up at 20.625p.
Fallers included Melrose Resources which lost 2.09% at 269.25p. Standard Life also softened, down 1.2% at 247.7p and STV Group was down 1.13% at 110.25p.