FTSE dips as Greece D-Day arrives
The FTSE 100 slipped as the deadline for Greece to accept a new bailout or face a default which could trigger financial shockwaves across the globe arrived.
Greece must tell the European Union by the end of today whether it accepts the stringent terms of a new bailout deal amid reports of divisions within the country’s ruling coalition.
The UK’s FTSE 100 rose 105 points to a seven-month closing high of 5,901.07 on Friday, recording its best weekly performance in two months.
That was aided by positive US jobs data which lifted sentiment at the close of the week.
In London the mining sector was in focus for investors with commodities trader Glencore International expected to offer an eight per cent premium to Xstrata shareholders in a $88bn merger deal between the two.
Glencore shares were down more than four per cent in early trading as some Xstrata investors expressed doubt that en eight per cent premium being lined up by Glencore would be enough to get the deal through. Xstrata was down 2.3 per cent.
Also in the resource sector Essar Energy dipped by 2.6 per cent while miner Vedanta was off by a similar level.
Among financial stocks insurer Admiral nudged down by more than four per cent.
On the up side miner Randgold Resources was the highest climber on the blue chip index, up three per cent after reporting a 250 per cent rise in profits in 2011.
Lloyds Banking Group was the second fastest climber with its stock up more than 1.5 per cent. It shone against other heavyweight banks with Barclays down 1.8 per cent and RBS 0.3 per cent.
Other risers included Land Securities and Imperial Tobacco which edged up by 0.5 per cent.
In Asia the Nikkei closed up 1.1 per cent while the Hang Seng nudged down by 0.2 per cent.
Meanwhile figures from mortgage lender Halifax showed that house prices had bounced back a little with a 0.6 per cent lift in January.