FTSE starts week lower as eurojitters pressure

The FTSE 100 index was unable to keep its early grip on the leaderboard as it headed lower following comments made by the finance minister for Germany. By the end of the day, the index had slipped to 5436, a drop of over 29 points, or 0.5 per cent.

Chris Bradshaw
shareprices.com - Monday, October 17, 2011

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The wobble was primarily caused by a statement from Wolfgang Schaeuble, the German finance minister, who largely dismissed the possibility that the financial woes in the eurozone could be adequately addressed in the upcoming G20 summit. The comments from Schaeuble followed a more upbeat sentiment from ministers over the weekend who said that the summit would be expected to 'decisively address the current challenges through a comprehensive plan'.

Transactions subsequent to the German's comments were rather nervy and banks and miners backtracked on gains made.

However, oil firms enjoyed a strong performance as the sector was given a boost by news that BP and its partner in the Gulf of Mexico oil spill disaster, Anadarko, had reached a $4 billion payoff settlement. The news sent BP's price upwards by 2.2 per cent and helped to lift its peers. In related sectors, oil services provider AMEC was another key gainer, climbing 1.7 per cent as it revealed a new contract worth £150 million, connected to an existing deal with BP.

The heaviest faller of the afternoon was G4S, as it reported the acquisition of ISS for £5.2 billion, a move that will create the biggest global security group. The news that the purchase is to be funded by a combination of debts and share offers, sent the stock tumbling by 22.10 per cent.

 

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