The FTSE 100 is projected to start 0.3% lower after shedding 0.4% on Friday.
Telecom group BT (LON:BT.A) led the blue chips with a gain of nearly 3% after signing a MoU (memorandum of understanding) with the UK government, keeping all of its current public sector contracts in place. The new government has been implementing radical austerity measures, scrapping numerous contract and projects in an effort to cut budget deficit.
Royal Bank of Scotland (LON:RBS) followed, rising 2.4% after the European Commission approved the sale of its assets to Banco Santander SA, which will pay £1.65 billion for 300 branches in the UK and 40 banking centres.
Another major bank Barclays (LON:BARC) and specialty chemicals firm Johnson Matthey (LON:JMAT) tacked on nearly 2%. Airline British Airways (LON:BAY), turbine manufacturer Rolls-Royce (LON:RR), pharmaceutical company Shire (LON:SHP) and gold producer African Barrick Gold (LON:ABG) added 1.1%.
Old Mutual (LON:OML) was the heaviest faller among the blue chips with a 4.8% loss after bank HSBC (LON:HSBA) broke off talks to buy the insurer’s 52% stake in South Africa’s fourth largest bank Nedbank, while reaffirming its commitment to expanding operations in the country.
The decline in Old Mutual’s shares dragged down its sector peers as Standard Life (LON:SL) and RSA Insurance Group (LON:RSA) dropped 3.2%. Software developer Autonomy Corp (LON:AU) retreated 3%. Oil and gas producer Cairn Energy (LON:CNE) lost 2.6%, while mining majors Kazakhmys (LON:KAZ) and Xstrata (LON:XTA) retreated 2.3%, as did satellite telecommunications firm Inmarsat (LON:ISAT).
In the US, the Dow Jones Industrial Average declined 0.3%, keeping its weekly gains to 0.5%. The S&P 500 index did better, rising 0.2%. Technology stocks were buoyant as the NASDAQ composite rallied 1.4% on the last day of trading.
Asian market were in selling mode today. Hong Kong’s Hang Seng slipped 1%, South Korea’s KOSPI declined 1.35%, Australia’s S&P/ASX 200 lost 0.8% and Japan’s Nikkei 225 retreated 0.2%, while China’s Shanghai Composite Index went against the tide, rising 0.2%.
Commodities
Oil prices moved lower. November Brent Crude declined to US$81.95/barrel, while US light, sweet crude for November delivery dropped to US$80.75/barrel.
Precious metals declined. Gold slid to US$1,361/oz, while silver and platinum retreated to US$23.96/oz and US$1,683/oz respectively.
Base metals followed. Copper and nickel declined to US$3.76/lb and US$10.71/lb. Zinc moved down to US$1.068/lb.
An update on US industrial production is due out today.