Eurozone fears hold back the FTSE
London's leading shares index struggled to find direction as fears for the future of the eurozone were compounded by disappointing data in the United States.The FTSE 100 Index closed 10.1 points higher at 5483.8, after dipping in and out of the red throughout the session, while indices across Europe fell, with the Cac 40 in France off 0.8% and Germany's Dax down 0.1%.
Fears over the world's largest economy returned after figures showed a 0.2% drop in US retail sales in May and a 1% plunge in producer prices.
But Europe's economic troubles and the weekend's impending Greek elections weighed most heavily on investor sentiment, with Spanish bond yields up 1% at 6.77% - close to the euro-era high of 6.80% seen on Tuesday.
The pound fell against the US dollar to 1.55 as the greenback was bolstered by its safe haven status ahead of the Greek vote. The pound also slipped to 1.23 against the euro.
In corporate news, Sainsbury's saw shares plunge after the supermarket chain reported a lower-than-expected 1.4% rise in like-for-like sales for the 12 weeks to June 9. Shares were 7.6p, or 2.6%, lower at 283.5p as the figure was slightly below some market forecasts for growth of up to 2%, although Sainsbury's offset this by claiming it continued to take market share from rivals. It hailed a week of strong trading over the Queen's Diamond Jubilee, with an additional two million transactions over the period.
But trading for the supermarket was also impacted by a downbeat note on the sector from HSBC. Smaller rival Morrisons was another casualty, off 2.4p, or 1%, at 277.8p.
Advertising and marketing giant WPP was also in focus after it suffered a shareholder rebellion against executive pay. It said 59.5% of investors voted against its pay report - a backlash against boss Sir Martin Sorrell's remuneration deal. Shares in WPP fell 15p to 753p.
JD Sports Fashion, whose shares have fallen 25% over the past six months, closed 3.5p higher at 615.3p after it reported improved sales figures from its core estate. The Bury-based group, which operates around 355 JD Sports and Size? outlets in the UK, said like-for-like sales were up 1.5% in the 19 weeks to June 9, which represents a rise of around 1.8% over the past 10 weeks despite poor weather.
Shares in blue chip retailer Next were higher - up 19p at 3070p - after a positive trading update from its Spanish rival Inditex, the owner of fast fashion chain Zara. Inditex saw net profits leap 30% as sales rose 15% in its first quarter as it continued to expand outside its economically challenged domestic market.
In corporate news, Sainsbury's saw shares plunge after the supermarket chain reported a lower-than-expected 1.4% rise in like-for-like sales for the 12 weeks to June 9. Shares were 7.6p, or 2.6%, lower at 283.5p as the figure was slightly below some market forecasts for growth of up to 2%, although Sainsbury's offset this by claiming it continued to take market share from rivals. It hailed a week of strong trading over the Queen's Diamond Jubilee, with an additional two million transactions over the period.
But trading for the supermarket was also impacted by a downbeat note on the sector from HSBC. Smaller rival Morrisons was another casualty, off 2.4p, or 1%, at 277.8p.
Advertising and marketing giant WPP was also in focus after it suffered a shareholder rebellion against executive pay. It said 59.5% of investors voted against its pay report - a backlash against boss Sir Martin Sorrell's remuneration deal. Shares in WPP fell 15p to 753p.
JD Sports Fashion, whose shares have fallen 25% over the past six months, closed 3.5p higher at 615.3p after it reported improved sales figures from its core estate. The Bury-based group, which operates around 355 JD Sports and Size? outlets in the UK, said like-for-like sales were up 1.5% in the 19 weeks to June 9, which represents a rise of around 1.8% over the past 10 weeks despite poor weather.
Shares in blue chip retailer Next were higher - up 19p at 3070p - after a positive trading update from its Spanish rival Inditex, the owner of fast fashion chain Zara. Inditex saw net profits leap 30% as sales rose 15% in its first quarter as it continued to expand outside its economically challenged domestic market.
© 2013 Press Association