Miners, Vodafone peg back FTSE

By David Brett

LONDON (Reuters) - The leading share index ticked down 0.1 percent on Tuesday, ending a four-day winning run, as weakness in miners and Vodafone (VOD.L: 株価, 企業情報, レポート) offset strength in banks, underpinned by a strong update from HSBC (HSBA.L: 株価, 企業情報, レポート).

The FTSE 100 .FTSE closed 4.63 points lower at 5,230.55, after hitting a two-week high earlier in the session.

"After last week's slew of economic data and Monday's big gains on the major indexes it's no surprise that today has really been a nothing day," said James Hughes, market analyst at CMC Markets.

"The fact that the major indexes have managed to recover to these levels has left many with renewed optimism about the state of financial markets as we move towards the end of the year."

Investors booked profits on miners, which have risen 13 percent over the last five days, buoyed by the prospect of a recovery in demand and soaring metal prices.

Sector fallers included Randgold Resources (RRS.L: 株価, 企業情報, レポート), down 4.2 percent after the gold miner posted higher output but lower-than-expected profit in the third quarter.

Fresnillo (FRES.L: 株価, 企業情報, レポート), Anglo American (AAL.L: 株価, 企業情報, レポート), Antofagasta (ANTO.L: 株価, 企業情報, レポート), Xstrata (XTA.L: 株価, 企業情報, レポート), Eurasian Natural Resources (ENRC.L: 株価, 企業情報, レポート) and BHP Billiton (BLT.L: 株価, 企業情報, レポート) dropped 0.3 to 3.7 percent.

Energy issues turned lower as the price of crude retreated back below $80 a barrel after the threat of tropical storm Ida to Gulf of Mexico oil operations passed, when the storm limped ashore in Alabama.

Cairn Energy (CNE.L: 株価, 企業情報, レポート), BG Group (BG.L: 株価, 企業情報, レポート), BP (BP.L: 株価, 企業情報, レポート) and Tullow Oil (TLW.L: 株価, 企業情報, レポート) lost 0.2 to 2.4 percent.

Among individual losers, Vodafone was down 1.5 percent as analysts pointed to underlying weakness and tough competition in emerging markets after the company reported in-line results and an extension to its cost-cutting programme to 2 billion pounds.

BANKS BUOYANT

Europe's biggest bank HSBC bolstered banking sector gains, rising 4 percent on the back of its trading update.

The bank said its global banking and markets division was having a record year and that losses on consumer loans had shown their first fall in three years.

Barclays (BARC.L: 株価, 企業情報, レポート) followed HSBC's cue in signalling bad debts maybe past their peak but that didn't stop investors deserting the stock on fears over the outlook for its investment banking operations. Its shares were down 5.1 percent.

The rest of the sector was mixed, with Lloyds Banking Group (LLOY.L: 株価, 企業情報, レポート), 43 percent government owned, flat after announcing it is to cut a further 5,000 jobs.

State-backed Royal Bank of Scotland (RBS.L: 株価, 企業情報, レポート) fell 0.9 percent following recent falls, while Standard Chartered (STAN.L: 株価, 企業情報, レポート) advanced 0.6 percent.

Among other financials, UK fund firm Schroders Plc (SDR.L: 株価, 企業情報, レポート) added 1.8 percent after it attracted net inflows of 7 billion pounds in the third quarter, its strongest performance in years.

Other gainers included Imperial Tobacco (IMT.L: 株価, 企業情報, レポート) which climbed 2.3 percent after the firm beat forecasts with an 18 percent rise in annual earnings.

Rival British American Tobacco (BATS.L: 株価, 企業情報, レポート) added 0.4 percent.

Wednesday sees both unemployment data and the inflation report out of the UK.

"Weaker numbers could of course see an unwinding of the gains seen on Monday but a degree of nervous profit taking, whatever the result could well be on the cards," Hughes said.

(Editing by Jon Loades-Carter)