US figures send FTSE below 6500 mark

Saturday 16 March 2013

THE FTSE-100 Index slid below the 6500 barrier yesterday as disappointing US economic indicators sent world markets into the red.

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Higher US inflation figures and a weak consumer confidence reading in America had a knock-on impact on stocks across Europe, with the FTSE- 100 down 39.8 points to 6489.7, having closed above 6500 on Monday for the first time in more than five years.

Despite yesterday's falls, the top tier narrowly managed to secure its fifth week of successive gains, having finished last week at 6483.6.After Bank of England governor Sir Mervyn King said that the UK currency was now "properly valued", the pound responded by climbing further away from the 1.50 barrier against the US dollar, up some 0.3% to 1.51. The pound was at 1.16 against the single currency.In London equities, Royal Dutch Shell slipped 28p to 2240p after JPMorgan Cazenove cut its price target on the stock amid worries over the company's growth potential.And Morrisons reversed the gains seen on Thursday after it announced a potential deal with Ocado to progress the supermarket's online grocery operation. Shares were close to the top of the fallers board, off 4.9p to 271.3p.However, Ocado continued to rise on excitement over the prospect of closer ties with Morrisons. Shares jumped 24% on Thursday and were up another 8%, or 13.3p, to 183.3p yesterday.Elsewhere in the FTSE-250 Index, Rentokil Initial jumped 9% after it posted full-year results showing a better-than-expected 10% rise in profits to £191.1 million.While its City Link parcel delivery arm remains in the red, shares in the pest control and washrooms firm were 8.5p higher at 99p.Pub chain JD Wetherspoon rose 5.5p to 515.5p despite revealing a 2.7% fall in its half-year profits to £34.8 million due to rising costs.Investors were cheered as it maintained its recent sales improvement with a like-for-like rise of 7.3% in the six weeks to March 10.The biggest FTSE-100 risers were Hargreaves Lansdown, up 34.5p to 929.5p, International Airlines Group, ahead 9.5p to 272.2p, Fresnillo, 23p higher at 1480p, and Anglo American, up 29p to 1892.5p.The biggest FTSE-100 fallers were Aberdeen Asset Management, down 13.3p to 411.3p, HSBC, off 19.9p to 720.1p, Melrose Industries, 7.2p lower at 264.6p, and Tate & Lyle, down 21p to 818p.

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US figures send FTSE below 6500 mark

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