Eurozone news hampers FTSE gains
Stimulus measures from central banks across the world have failed to trigger a meaningful rally for London's leading shares index.The Bank of England pumped another £50 billion into the UK economy, while interest rates in the eurozone and China were cut, but the measures only served to fuel fears about the strength of the global economy.
The FTSE 100 Index was up 8.2 points at 5692.6, as it surrendered most of its earlier gains and banks fell as much as 3%.
Germany's Dax, France's Cac40 and the Dow Jones Industrial Average were all lower as the London market closed.
European Central Bank boss Mario Draghi spooked markets by making gloomy comments about the prospects for the eurozone. And the Chinese rate cut, which took markets by surprise and was the second in a month, fuelled fears of a 'hard landing' for the world's second biggest economy.
The pound was down against the dollar at 1.55 after sterling was weakened by the Bank's stimulus measures. But the pound was up against the euro at 1.25 after the single currency was hit even harder by Mr Draghi's warnings.
The banking sector was under pressure amid continued fears that other lenders besides Barclays would be implicated in the rate rigging scandal.
Royal Bank of Scotland was the biggest faller, down 7.3p at 207.2p, or 3%, while Lloyds Banking Group fell 0.8p to 30.8p.
Barclays saw its credit rating outlook downgraded by agency Moody's to reflect concerns over Bob Diamond's resignation as chief executive. But shares in the embattled bank rose 2.2p to 168.2p as it regained some of its recent hefty falls.
The biggest Footsie risers were GKN up 24.4p at 211p, Xstrata ahead 25p at 845.8p, Experian up 28p at 954p, and Arm Holdings ahead 9p at 521p. The biggest Footsie fallers were Royal Bank of Scotland down 7.3p at 207.2p, Evraz off 8.7p 257.8p, Polymetal International down 28p at 894p, and Lloyds off 0.8p at 20.8p.
The pound was down against the dollar at 1.55 after sterling was weakened by the Bank's stimulus measures. But the pound was up against the euro at 1.25 after the single currency was hit even harder by Mr Draghi's warnings.
The banking sector was under pressure amid continued fears that other lenders besides Barclays would be implicated in the rate rigging scandal.
Royal Bank of Scotland was the biggest faller, down 7.3p at 207.2p, or 3%, while Lloyds Banking Group fell 0.8p to 30.8p.
Barclays saw its credit rating outlook downgraded by agency Moody's to reflect concerns over Bob Diamond's resignation as chief executive. But shares in the embattled bank rose 2.2p to 168.2p as it regained some of its recent hefty falls.
The biggest Footsie risers were GKN up 24.4p at 211p, Xstrata ahead 25p at 845.8p, Experian up 28p at 954p, and Arm Holdings ahead 9p at 521p. The biggest Footsie fallers were Royal Bank of Scotland down 7.3p at 207.2p, Evraz off 8.7p 257.8p, Polymetal International down 28p at 894p, and Lloyds off 0.8p at 20.8p.
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