Headline shares were modestly lower in midday trade, with firm gains from oil producers failing to offset weakness in banking and financial services and the effects of the ex-dividend factor. At high noon, the FTSE100 was down 19.94 points at 5,583.58 with the FTSE250 off 142 points at 10,328 and the FTSE Smallcaps 18.06 points lower at 2,935.7. US stock futures suggest opening losses, investors cautious ahead of an interest-rate decision by the Federal Reserve. Dow Jones Industrial Average futures fell 12 points, S&P500 futures were down fell 2 points at 1,179 and Nasdaq 100 futures edged down a point at 2,007.7.
LONDON MARKETS
Trading in London got off to a negative start, investors concerned over sharp falls in US and Asian markets and following the downgrade of Greek bonds to junk status as well as a downgrade for Portugal. Although by midday losses were pared, the prospect of another down day on Wall Street maintained the downbeat tone of the session.
A busy day for company reports was headlined by oil major Royal Dutch Shell (LON:RDSA) up 51.5p at 1,973.5p after reporting a surge in first-quarter earnings as crude prices recovered. The stock was also lifted by an upgrade to add from reduce at Evolution with the target price raised to 2,100p from 1,750p. Peer BP (LON:BP.) which reported results yesterday, rose 11.3p at 621.3p, and BG Group (LON:BG.) which reports tomorrow, added 19.5p at 1,087.5p on the read across.
Cigarette makers were also in demand early on but battled with profit-taking and negative sentiment as the morning progressed, with BAT turning 25.5p lower at 2,114.5p, despite reporting continued earnings growth despite a fall in volumes. Rival Imperial Tobacco Group (LON:IMT) slipped 4p at 1,949p, shrugging off an upgrade to hold from sell at UBS. Randgold Resources (LON:RRS) made strong progress on announcing its new Tongon mine will open in October, up 110p at 5,265p, as gold firmed at $1,163 an ounce, while fellow gold producer Fresnillo (LON:FRES) gained 2p at 805p. The rest of the mining sector was mired in red, with Antofagasta (LON:ANTO) the biggest loser among them, down 21p at 1,004p. ENRC fell 8p at 1,200p and Kazakhmys (LON:KAZ) lost 25p at 1,364p, while Vedanta dropped 46p at 2,614p.
In the financial sphere, bankers were mixed, with the part-nationlised banks losing ground. RBS fell…
