RPT-FTSE off 1 pct on weak U.S. data, oils drag

Tue Jun 30, 2009 12:29pm EDT
 
[-] Text [+]

(Repeats to add dropped character square bracket)

* FTSE 100 falls on weak U.S. consumer confidence data

* Oils fall with crude price decline on weakening demand

* Banks and miners also down

By David Brett

LONDON, June 30 (Reuters) - Britain's top share index shed 1 percent on Tuesday in the wake of weaker than expected consumer confidence figures in the United States, with banks, miners and food retailers leading the fallers.

The FTSE 100 .FTSE index closed 44.82 points lower at 4249.21.

However, the index is up 8.2 percent on the quarter, the best such performance since the final quarter of 2003 and it has gained 22.8 percent since touching a six-year low on March 9.

U.S. data showed consumer confidence fell in June after two straight months of gains and Americans saying jobs are "hard to get" increased to 44.8 percent from 43.9 percent the previous month [ID:nN30263841].

The news came on the back of UK figures that revealed the British economy contracted at a much sharper pace than initially thought, falling by 2.4 percent in the first quarter, revised down from a fall of 1.9 percent. The fastest rate in more than 50 years. [ID:nLU251811]

"(The) session has descended into a degree of carnage after the release of some worse than expected U.S. consumer confidence figures," David Fineberg, head of trading at CMC Markets.

Falling crude prices at under $70 a barrel helped send oil majors lower. BG Group (BG.L), BP (BP.L) and Royal Dutch Shell (RDSa.L) fell between 1 and 1.8 percent.

BG Group also said it would pay Dallas-based Exco Resources Inc (XCO.N) $1.3 billion for an interest in shale gas resources, as oil and gas firms continue to snap up assets before an economic recovery drives prices higher. [ID:nLU618520]

Miners dropped between 0.5 and 3.1 percent, with Randgold Resources (RRS.L), Anglo American (AAL.L), Fresnillo (FRES.L), Eurasian Natural Resources (ENRC.L) and Xstrata (XTA.L) the biggest fallers.  Continued...

 

Featured Broker sponsored link