LONDON:'' Banks and commodity stocks dragged Britain's top shares lower on Tuesday, Nov 16 as worries about Ireland's debt dented the financial sector and helped depress metal and energy prices.
There were worries that the Federal Reserve may scale back efforts to stimulate the economy after strong U.S. retail sales data suggested that the economy may not need so much support in the shape of quantitative easing. By 0939 GMT the FTSE 100 was down 67.75 points or 1.2 percent at 5,752.66 after it ended 0.4 percent higher on Monday.
Sovereign debt worries were back in the spotlight after Ireland resisted pressure to seek a state bailout by signaling that only its banks may need help.
This hit banks with Barclays and HSBC down 1.5 and 2 percent respectively.
"There's a sense that there's impatience with the Irish situation, there have been rumours and counter rumours, and while there's uncertainty the markets will keep drifting lower," Giles Watts, head of equities at City Index said.
Elsewhere among financials Man Group was a sharp faller, off 4 percent, with traders saying that its flagship AHL fund was having a tough week.
Commodity stocks also weighed heavily on the index on fears over the potential for Chinese interest rate rises after a surge in inflation in the world's most populous country weighed on metal and crude prices.
Fresnillo fell 3.8 percent while Antofagasta slipped 3.8 percent.
Burberry was among a select group of stocks in positive ground, up 0.1 percent after the luxury goods group beat forecasts with a 49 percent jump in first half profit.
Rexam was a strong gainer, up 1.5 percent after the consumer packaging maker said it expected second half results to be in line with its expectations.
''
TECHS WATCHED
Technical analysts will be looking to see what the size of the next upmove is to determine whether there is a longer term selling trend.
"Based on the short-term down swing of 5901 to 5733, bearish traders should look for the next rally to stop inside another retracement zone at 5817 to 5836," James A. Hyerczyk at Autochartist said.
"If the market is topping, a rally into this retracement zone is likely to set up a secondary lower top which will be a stronger indication that the sellers are taking charge."
Inflation in Britain rose unexpectedly to a four-month high in October, data showed on Tuesday, forcing Bank of England Governor Mervyn King to write another public letter explaining why inflation remains so far above target.
However while sterling gained, stocks showed little reaction to the data. - Reuters
There were worries that the Federal Reserve may scale back efforts to stimulate the economy after strong U.S. retail sales data suggested that the economy may not need so much support in the shape of quantitative easing. By 0939 GMT the FTSE 100 was down 67.75 points or 1.2 percent at 5,752.66 after it ended 0.4 percent higher on Monday.
Sovereign debt worries were back in the spotlight after Ireland resisted pressure to seek a state bailout by signaling that only its banks may need help.
This hit banks with Barclays and HSBC down 1.5 and 2 percent respectively.
"There's a sense that there's impatience with the Irish situation, there have been rumours and counter rumours, and while there's uncertainty the markets will keep drifting lower," Giles Watts, head of equities at City Index said.
Elsewhere among financials Man Group was a sharp faller, off 4 percent, with traders saying that its flagship AHL fund was having a tough week.
Commodity stocks also weighed heavily on the index on fears over the potential for Chinese interest rate rises after a surge in inflation in the world's most populous country weighed on metal and crude prices.
Fresnillo fell 3.8 percent while Antofagasta slipped 3.8 percent.
Burberry was among a select group of stocks in positive ground, up 0.1 percent after the luxury goods group beat forecasts with a 49 percent jump in first half profit.
Rexam was a strong gainer, up 1.5 percent after the consumer packaging maker said it expected second half results to be in line with its expectations.
''
TECHS WATCHED
Technical analysts will be looking to see what the size of the next upmove is to determine whether there is a longer term selling trend.
"Based on the short-term down swing of 5901 to 5733, bearish traders should look for the next rally to stop inside another retracement zone at 5817 to 5836," James A. Hyerczyk at Autochartist said.
"If the market is topping, a rally into this retracement zone is likely to set up a secondary lower top which will be a stronger indication that the sellers are taking charge."
Inflation in Britain rose unexpectedly to a four-month high in October, data showed on Tuesday, forcing Bank of England Governor Mervyn King to write another public letter explaining why inflation remains so far above target.
However while sterling gained, stocks showed little reaction to the data. - Reuters
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