London’s blue chip stocks dropped like a stone again today after a disappointing end to trading yesterday.
Greece moves closer to defaulting on its debt with crisis talks held by Eurozone ministers last night including European Central Bank president Mario Draghi and German chancellor Angela Merkel.
Sticking in the Eurozone, May’s inflation data is due this morning with investors expecting it to raise to 0.2%, a six month high which would put deflation fears momentarily to rest.
Elsewhere, overnight there was a strong showing in the US where the Dow Jones finished 30 points higher at 18,040 and the S&P 500 rose four points to 2,112, while the Nasdaq Composite put on 13 points at 5,083.
Back in the UK, the FTSE 100 started well before diving 50 points to 6,899 at the mid-morning stage.
Plumber’s merchant Wolseley (LON:WOS) led the risers after it recorded a 16.6% rise in third quarter revenue.
Profits also rose by 20% and the figures sent shares 3% higher to 4,139p.
Meanwhile, propping up the index was British American Tobacco (LON:BATS) after details of a Canadian court ruling that awarded more than C$15bn in damages to Quebec smokers were revealed.
The judgement follows a ten year legal challenge against British American Tobacco's Canadian subsidiary, Imperial Tobacco Canada as well as two others and will be appealed. Shares eased 2% to 3,515p.
In broker news, independent oil and gas company Cairn Energy (LON:CNE) was given a boost by Jefferies International.
The broker raised its rating on the stock to ‘buy’ from ‘hold’ sending shares climbing 3.3% to 177p.
Conversely, mining company Centamin (LON:CEY) eased 2.3% to 67p after a downgrade to sector perform’ from ‘outperform’ by RBC Capital Markets.
In other news, domestic appliance retailer AO World (LON:AO) said it still “has a lot to do” after it recorded its second consecutive loss since listing in 2014. Shares eased 4% to 169p.
Meanwhile, Synergy Health (LON:SYR), which is merging with US group Steris, reported higher annual profits and said its new financial year had got off to a good start. Shares gained 30p to 1,843p.
In small caps, Camco Clean Energy (LON:CCE) has, as flagged last month, sold another chunk of its carbon credit portfolio, raising US$300,000. Shares climbed more than 9% to 5.6p.
Elsewhere, Magnolia Petroleum (LON:MAGP) told investors it will be participating in 16 new wells in proven US oil and gas projects. Shares rose 2% to 0.7p.
In other news, software group SeaEnergy (LON:SEA) slumped as it warned the weakness of the oil price had affected its North Sea operation. Shares dropped 26% to 15p on the news making it the day’s biggest faller.