Spain bailout fails to boost market
A multi-billion euro bailout for Spain's banks was not enough to appease traders' concerns over the embattled country as the London market closed 1% lower.The FTSE 100 Index closed down 62.4 points at 5651.8 as Spain's borrowing costs remained in bailout territory at more than 7% despite the country receiving approval for a 100 billion euro (£80 billion) rescue package for its beleaguered banks.
Investors remained concerned that the Spanish government would need its own bailout, fuelled by reports that the country's Valencia region was set to seek help to refinance its debt.
The pound was at a near four-year high against the battered euro at 1.28, while sterling fell against the US dollar to 1.54.
Banking stocks were among the worst hit given fears over their exposure, with Barclays down 5p at 159.3p, HSBC off 16.2p to 533.2p and part-nationalised Royal Bank of Scotland slipping 7.6p to 204.7p.
Disappointing first quarter figures from mobile phone giant Vodafone added to the rout. Vodafone suffered a 2% drop in shares - down 3.1p to 180p - after posting a 7.7% decline in reported revenues, which came after a sharp slowdown in sales across emerging markets and a drop in UK revenues.
Other movers in the top flight included G4S, which fell another 1.7p to 241.8p despite its insistence that losses on its Olympics security contract remained within the £35 million to £50 million range.
Clive Cowdery's insurance acquisition empire Resolution fell 5%, down 12.4p to 215.5p, after it cancelled plans to return £250 million of excess capital to shareholders because of uncertain trading conditions.
The biggest Footsie risers were United Utilities up 7.5p at 698p, Rexam ahead 2.6p at 442.1p, BSkyB up 4p at 697.5p and ARM Holding ahead 2.8p.
The biggest Footsie fallers were Evraz down 16p at 234.4p, Resolution off 12.4p at 215.5p, Royal Bank of Scotland down 7.6p at 204.7p and International Airlines Group off 5.3p at 154.8p.
Disappointing first quarter figures from mobile phone giant Vodafone added to the rout. Vodafone suffered a 2% drop in shares - down 3.1p to 180p - after posting a 7.7% decline in reported revenues, which came after a sharp slowdown in sales across emerging markets and a drop in UK revenues.
Other movers in the top flight included G4S, which fell another 1.7p to 241.8p despite its insistence that losses on its Olympics security contract remained within the £35 million to £50 million range.
Clive Cowdery's insurance acquisition empire Resolution fell 5%, down 12.4p to 215.5p, after it cancelled plans to return £250 million of excess capital to shareholders because of uncertain trading conditions.
The biggest Footsie risers were United Utilities up 7.5p at 698p, Rexam ahead 2.6p at 442.1p, BSkyB up 4p at 697.5p and ARM Holding ahead 2.8p.
The biggest Footsie fallers were Evraz down 16p at 234.4p, Resolution off 12.4p at 215.5p, Royal Bank of Scotland down 7.6p at 204.7p and International Airlines Group off 5.3p at 154.8p.
© 2013 Press Association