London close: Stocks snap four-day winning streak

30th Apr 2012 16:30

- Chicago PMI, US consumer spending disappoints- Spain joins the UK in recession- Global stock markets in the redWith economic data missing expectations Stateside and Spain continuing to dampen the outlook for the Eurozone economy, London's FTSE 100 index slumped on Monday, snapping a four-day winning streak. Most major European indices finished with firm losses today, while US benchmarks opened lower on Wall Street.The Chicago-area purchasing managers' index (PMI) dropped from 62.2 in March to 56.2 in April, well below the consensus estimate of 60.0 and the six-month average of 61.2. "This report mirrored the declines in both the Empire State and Philadelphia Fed earlier this month, and we look for this trend to continue somewhat in the form of a modest decline in the April manufacturing ISM to 52.5 from 53.4 in tomorrow's release," said analyst Cooper Howes from Barclays Capital. Meanwhile, consumer spending increased by a lower-than-predicted rate in March. The Commerce Department said that spending had risen by 0.3% last month (consensus: +0.4%), compared with a 0.9% rise in February.Spain's National Statistic Institute today revealed that the economy is officially back in recession, having contracted by 0.3% in the first quarter following a similar contraction in the fourth quarter of 2011. Nevertheless, the Bank of Spain recently estimated that the GDP decline would be 0.4%. "European stocks started the week mostly down after Spain followed the UK into a technical recession, as expected...Spain is expected to contract by 1.7% this year and remain in a recession for the rest of the year at least, following the deep cuts currently being implemented in order to cut the deficit.The news adds more despair to Europe's fourth largest economy," said analyst Craig Erlam from Alpari. Spanish bond yields will closely watched this week ahead of the country's debt auction on Thursday, the first auction since the country's sovereign debt rating was downgraded by Standard and Poor's last week. Having downgraded Spain, the credit ratings agency has now announced that it is taking similar action on 16 of the country's banks. The yield on a 10-year bond was down 11.4 basis points at 5.767% by 16:57 in London. FTSE 100: Randgold and Man provide a dragPrecious metals peers Fresnillo and Randgold Resources were heavy fallers today with the latter being weighed down by a ratings cut from Nomura. The broker downgraded the stock from neutral to reduce this morning, saying that while it has de-rated in line with the broader sector, there is less potential upside than peers partly due to its exposure to political risk in Mali. Meanwhile, hedge fund manager Man Group, which has lost around one-third of its value since the start of March, slumped a further 3.3% today ahead of its first-quarter update on Tuesday. The recent falls have been in part due to the performance of its flagship AHL fund, which has led to much takeover speculation in the market. In contrast, fund manager Aberdeen Asset Management was on the rise today after it reported a solid increase in revenue and profit in its first half which it says was down to a return of investor appetite for risk assets in 2012 and an ongoing desire for yield. Banking group Lloyds finished lower after quashing rumours that it has received a 'multi-billion' pound offer for its life assurance, pensions and savings business, Scottish Widows. The offer price was pencilled in at £5-6bn, according to Monday's London Evening Standard.Engineering group Weir was lower despite saying that five new products launched by its Oil & Gas division today are expected to expand its addressable market by over $500m. FTSE 250: Essar rebounds while Aquarius plummetsEssar Energy saw its share price jump by nearly a tenth today with analysts pinning the stock's performance to a simple correction following its recent slump. Even after taking today's rise into account, the stock is still worth less than half off its six-month high of 312.1p. Platinum producer Aquarius was heading the other way after attributable production for the group's fiscal third quarter decreased by 7% quarter-on-quarter to 97,802 4E (platinum, palladium, rhodium and gold) ounces, as the group was hit by seasonal absenteeism, safety stoppages, industrial action and poor weather conditions. Hikma Pharmaceuticals was making gains after Jefferies reiterated its buy rating on the stock, saying that the "recent sell-off provides a compelling entry point". Despite the challenging conditions that have persisted within the financial markets, financial software provider Fidessa continued to deliver growth during the first quarter of 2012, helping shares higher today. The stock was also given a lift by FinnCap which this morning upgraded its rating from sell to hold. FTSE 100 - RisersAberdeen Asset Management (ADN) 283.50p +3.47%Polymetal International (POLY) 915.00p +2.35%British Sky Broadcasting Group (BSY) 678.00p +1.57%Burberry Group (BRBY) 1,485.00p +1.09%Whitbread (WTB) 1,927.00p +1.05%AstraZeneca (AZN) 2,699.50p +0.71%BG Group (BG.) 1,450.50p +0.45%Amec (AMEC) 1,135.00p +0.44%BHP Billiton (BLT) 1,974.50p +0.43%National Grid (NG.) 665.50p +0.38%FTSE 100 - FallersRandgold Resources Ltd. (RRS) 5,425.00p -3.38%Fresnillo (FRES) 1,560.00p -3.29%Man Group (EMG) 103.50p -3.27%Capita (CPI) 663.00p -3.21%ITV (ITV) 83.70p -2.90%Aviva (AV.) 308.10p -2.72%Glencore International (GLEN) 425.60p -2.66%IMI (IMI) 989.50p -2.61%BAE Systems (BA.) 295.20p -2.57%ARM Holdings (ARM) 524.00p -2.42%FTSE 250 - RisersEssar Energy (ESSR) 146.50p +9.08%Invensys (ISYS) 222.10p +5.01%Hikma Pharmaceuticals (HIK) 628.00p +3.72%Fidessa Group (FDSA) 1,550.00p +3.33%Bumi (BUMI) 518.50p +2.07%Carillion (CLLN) 291.70p +1.74%Anglo Pacific Group (APF) 320.00p +1.72%Dairy Crest Group (DCG) 301.00p +1.65%Heritage Oil (HOIL) 148.80p +1.57%JD Sports Fashion (JD.) 820.00p +1.55%FTSE 250 - FallersAquarius Platinum Ltd. (AQP) 130.00p -10.28%Ruspetro (RPO) 189.00p -4.06%SEGRO (SGRO) 221.10p -3.37%Talvivaara Mining Company (TALV) 182.60p -3.13%FirstGroup (FGP) 194.80p -3.04%Michael Page International (MPI) 415.60p -2.72%Bodycote (BOY) 425.40p -2.68%Salamander Energy (SMDR) 248.60p -2.62%Bwin.party Digital Entertainment (BPTY) 154.00p -2.53%St James's Place (STJ) 330.50p -2.51%BC