FTSE lurches towards worst month since August
The FTSE 100 dipped this morning as the Eurozone’s debt woes continued to cast a shadow and hopes that China would trigger further fiscal stimulus were dealt a blow.
Investors are awaiting the European Commission’s economic strategy on how austerity measures can be introduced without quashing the growth required for recovery.
Concerns about Spain’s ability to recapitalize its banks were reignited by signals from the European Central Bank that it is not prepared to step in.
Meanwhile leading economists in China came out against aggressive new measures to boost growth in the country’s economy. Businesses in the UK have been looking to China for growth as demand in the Eurozone ebbs away.
The FTSE 100 is heading for its poorest performing month since August as the problems mount.
London’s blue chip index was also hit by a string of companies going ex-dividend including National Grid, Marks & Spencer and Capital Shopping Centres (CSC).
National Grid, down 4.4 per cent, was the biggest faller on the index.
Capital Shopping Centres was off by 3.9 per cent and Marks and Spencer 2.8 per cent. Miner Fresnilllo dipped by 3.7 per cent and oil services group Amec 2.9 per cent.
Oil explorer BG was off by 1.6 per cent after it announced that it was selling off a stake in plants in the Philippines.
Lloyds Banking Group lost just over two per cent and RBS 2.6 per cent.
There were few significant risers with hedge fund manager Man Group nudging up by 0.6 per cent.
Others to rise were outsourcer Serco, 0.3 per cent, and retailer Morrisons 0.4 per cent.
Among banks Barclays was the strongest performer with a slim 0.1 per cent lift.
Meanwhile in Asia the Nikkei closed down 0.2 per cent and the Hang Seng 1.9 per cent.
In the UK mortgage approvals for house purchases and lending were at their highest since January last month, according to Bank of England data.