London stocks' September rally takes a pause at 5,407.82

Stocks on London's FTSE 100 index broadly moved down today as European debt concerns hit banks and other risk-sensitive stocks. The FTSE 100 index finished the day just above the 5,400 level, losing 31.37 points or 0.58 per cent despite an intraday low of 5,381.

Chris Bradshaw
shareprices.com - Tuesday, September 07, 2010

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Barclays

Banks were at the losing end as a Wall Street Journal article promoted renewed concerns about the validity of the European Central Bank's stress tests earlier this year, tests which most banks passed. The sudden resignation of John Varley from Barclays did not help. Barclays closed down 2.74 per cent.

Mining stocks showed substantial losses fuelled in part by the victory of Australia's incumbent Labour government which today managed to put together a coalition. This is disappointing news for Australian mining companies who will be subject to a 30 per cent profits tax. Eurasian Natural Resources moved down by 2.17 per cent and Rio Tinto, Kazakhmys, Xstrata, Antofagasta and BHP Billiton all moved down by 2.2 to 1.3 per cent.

Takeover talks have boosted Tullow Oil and Invensys, Tullow Oil gained 7.42 per cent on word that the company may be an acquisition target for ExxonMobil. Invensys which has recently been seen as an exit candidate from the FTSE 100 gained 7.42 per cent.

With investor sentiment down defensive stocks bucked the trend to make some gains. Utilities Severn Trent, United Utilities Group and National Grid moved up by 2.33 per cent, 1.28 per cent and 0.28 per cent respectively. GlaxoSmithKline, WM Morrison and Imperial Tobacco Group moved up by 0.88 per cent, 0.55 per cent and 0.32 per cent respectively.

 

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