A surge in Spain’s borrowing costs to within bail-out territory triggered another session of losses for London’s leading shares index today.
The FTSE 100 Index fell 16.8 points to 5,467.1 after the implied interest rate on Spain’s benchmark bonds pushed above 7%, a euro era high.
Banks were higher however, as the Treasury confirmed a key concession in its banking reforms by broadening the range of activities allowed within ring-fenced businesses. Royal Bank of Scotland was among the biggest risers, ahead 6.9p at 229.4p.
BSkyB and BT were among the biggest fallers in the top flight after they won an austerity-busting £3billion auction of Premier League football rights.
Long-term rights holder BSkyB was down 3.5%, or 24.5p at 671p. BT was down 3.5% or 7.4p to 201.7p amid concerns about the price paid for securing 38 games a season.
Elsewhere in the top flight, Burberry shares were 3% lower, off 43p to £12.98, after fellow luxury goods group Mulberry announced a slowdown in its recent sales growth.
Mulberry’s shares were 23% lower, off 453p to £15.60, even though it kept up its recent explosive growth with a 54% jump in pre-tax profits to £36million.
The biggest Footsie risers included Polymetal International up 31.5p at 827p, Admiral ahead 35p at £11.40 and Legal & General ahead 2.9p at 119.5p.
The biggest Footsie fallers were Man Group down 2.9p at 69.2p, GKN off 7p at 175.3p and Glencore down 13.3p at 341.7p.
Barry Shepherd, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted that the day’s fallers included Petrofac, off 2% at £14.57, BG Group shed 2.7% to £12.26 and Cairn Energy lost 3% at 280.2p.
Risers included Stagecoach, up 1% at 232.65p, and drinks manufacturer A.G. Barr, which closed 9.3% higher at 373.8.