A positive quarter for the London stock market ended on a negative note yesterday as investors continued to tread cautiously amid eurozone fears.
The FTSE 100 Index is up by more than 3% in the third quarter but some of the progress seen after recent stimulus efforts by central bankers has come unstuck because of uncertainty over whether Spain will accept a bail-out.
The results of stress test on the country's banks and the prospect of a downgrade of Spanish debt by Moody's added to worries as the FTSE 100 Index declined 37.3 points to 5742.1 in the final session of the quarter.
US data was also a cause for concern as the Chicago business barometer showed its first contraction since September 2009 and consumer sentiment missed expectations despite the efforts of the Federal Reserve.
The flight from risk strengthened the appeal of the safe haven US dollar, which was higher against most major currencies. The pound was down at 1.61 against the greenback and was flat against the troubled euro.
Elephant and Diamond insurer Admiral was one of the biggest FTSE fallers after the Office of Fair Trading referred the private motor insurance market to the Competition Commission for a probe that could drag on for two years.
More Than insurer RSA Insurance was 1.5p lower at 110.5p but the move has not stopped RBS from publishing the prospectus for next month's Direct Line Group flotation, which will value the Churchill insurer at between £2.4 billion and £2.9bn.
RBS shares were 0.4p higher at 257p, but Barclays was down 2.4p to 214.85p as fears over Spain hit the stock. Shares in security firm G4S were higher despite the resignations of two directors in the wake of a review into its failure to fulfil all its obligations in the Olympics Games contract. The company's monitoring processes were inadequate, but with chief executive Nick Buckles holding on to his job shares rose 2p to 265.7p.
Travel firm Thomas Cook rose 9% or 1.5p to 17.5p after saying its turnaround plan was on track with signs of financial improvement. Five-a-side football operator Goals Soccer Centres fell 5% after it tapped investors for £2.8 million in a placing priced at 115p a share.
The biggest FTSE 100 Index risers were Fresnillo up 75p at 1853p, Polymetal International ahead 25p at 1085p, Randgold Resources up 140p at 7615p and Antofagasta ahead 16p at 1262p.
The biggest fallers were Compass down 21p at 683.5p, Admiral off 32p at 1053p and Anglo American down 30.5p at 1817p.
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