London’s blue-chip stocks shed 20 points in early trading today following on from a flat day in the US.
Overnight, US retail sales figures failed to inject any impetus unchanged in April, showing higher internet purchases but less spending on big ticket items.
The Dow Jones eased 8 points while the Nasdaq gained 6 points and the S&P 500 dipped 1 point.
In the UK, the Bank of England reduced its growth forecasts for the next three years and cautiously said it will not raise interest rates for a year.
The news meant the UK’s main index took a tumble as global growth concerns grew. Uncertainties over a possible Greek debt default and a sell-off of government bonds also hurt the index.
The FTSE 100 was 0.3% lower to 6,929 after making a small gain yesterday, led by paper maker Mondi (LON:MNDI).
It received upgrades from blue chip brokers Credit Suisse and Deutsche Bank after yesterday’s impressive first quarter results. Shares climbed 1.3% to 1,432p.mndi
LEGOLAND owner Merlin Entertainments (LON:MERL) was another rare riser this morning.
Revenue growth was up both 3.3% on a like-for-like basis in what the company called a ‘satisfactory’ first quarter. Shares climbed 0.6% to 456p.
Meanwhile, broadcaster ITV (LON:ITV) led the fallers as many of its employees will stage walk out this morning in protest at staff being offered a rise of just 2% despite the broadcaster’s soaring profits.
Shares dropped 1.5% to 255p despite another quarter of strong growth for the company with revenues rising 14% to £665mln.
Away from the FTSE 100, scientific tool maker Oxford Instruments (LON:OXIG) had its rating reduced to ‘neutral’ from ‘buy’ by Swiss bank UBS. Shares eased 2.9% to 1,039p.
Ground engineering company Keller Group (LON:KLR) eased more than 3% to 997p after it revealed a slow start to the year in terms of both revenues and profits.
In small cap news, New World Oil & Gas (LON:NEW) led the risers as it appears that Judith Williams is to make a bid for the company. Shares climbed almost 20% to 0.35p.
Meanwhile, 88 Energy (LON:88E) said there were multiple rig options for drilling before the end of the year.
It also confirmed that drilling permits are on track after meeting with state agencies. Shares rose 13% to 0.56p.
Members of North York Moors Planning Authority will decide the fate of Sirius Minerals’ (LON:SXX) York Potash project next month after a report left its recommendation ‘open’.
Sirius Minerals will halt trading in its shares on the day of the meeting, set for 30 June. Shares climbed 4% to 14.5p on the news.
Elsewhere, StratMin Global (LON:STGR) boosted the carbon content in its graphite from Lohorano mine in Madagascar to profitable levels. Shares rose 8.5% to 5.3p.
It wasn’t all good news however as Kodal Minerals led the fallers after it raised £400,000 from a 222mln share issue. Shares dropped 21% to 0.18p.