The London market slipped into the red today as investors lost enthusiasm for plans to rescue Spain’s beleaguered banking sector with a potential £81billion bailout.
The FTSE 100 Index pulled back to close 2.7 points lower at 5,432.4 after enjoying gains of 2% earlier in the session as the move to shore up Spanish banks seemed to calm fears over the eurozone crisis.
Some financial stocks kept their heads above water as better-than-expected data over the weekend showing that China’s exports jumped in May from a year earlier maintained optimism.
Lloyds Banking Group closed up 2%, or 0.5p at 28.5p, while Barclays was 0.1p higher at 190.6p.
However, Royal Bank of Scotland fell 1.6p to 221.4p and insurer Aviva, which has a large presence in Spain, shed 2.6p to 268.9p.
Elsewhere, International Airlines Group – the owner of British Airways and Madrid-based carrier Iberia – rose 1%, or 1.6p to 147.7p.
Tesco’s shares were flat at 302.8p even though the retail giant spared investors another profits warning and said in a trading update there were signs its turnaround plan was beginning to gain traction.
The Footsie’s biggest risers included Glencore ahead 5.8p at 363.6p, BP up 5.9p at 414.9p and Wolseley ahead 30p at £22.41.
Among the heaviest fallers were Eurasian Natural Resources down 17p at 406.8p, Man Group off 3.2p at 76.7p, Fresnillo down 46p at £13.96 and Evraz off 6.6p at 272.6p.
Outside the top flight, regional airline Flybe enjoyed a 8% bounce – up 4.8p to 66.8p – despite slumping to full-year losses.
Barry Shepherd, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted BG Group off 0.6% at 1258.5p, FirstGroup down 1.1% at 209.75p, and Hunting losing 1.1% to 781.25p. Nautical Petroleum closed 2% higher at 287.5p.