London midday: Miners drag Footsie lower as Greek crisis continues

6th Feb 2012 11:58

Losses were pared by midday, but London's blue chip index remained firmly in the red with Greek talks continuing to weigh on sentiment. Meanwhile, US stock futures were pointing to a weak start on Wall Street.After a meeting last night between the three parties of Greece's coalition government, Prime Minister Lucas Papademos announced that they had agreed on "basic issues". However, it seems that the two smaller party heads remain opposed to excessive austerity measures. There was talk of a midday (in Athens) deadline for leaders to agree on terms, however a Greek government official has denied that such a deadline was ever set in stone, according to Reuters.Negotiations continue to crawl forward with Greek finance minister Evangelos Venizelos saying: "The gap between the successful completion of procedures and a deadlock, which could be accidental or due to a misunderstanding, is very small. We are on the razor's edge," he said. In a report released today from its Beijing office, the International Monetary Fund (IMF) warns that the European debt crisis could cut China's growth in half. In its China Economic Outlook, the IMF notes that the "global recovery is threatened by intensifying strains in the euro area and fragilities elsewhere." The Fund insists that China's growth rate would "drop abruptly if the euro area experiences a sharp recession". According to IMF calculations, this would translate to a fall of "around 4 percentage points" from the currently expected 8.25% for this year. MINERS FALL AS EURO CRISIS DRAGS ONGlencore International and Xstrata were among the worst performers, pulling back after last week's strong rise - the two commodities giants are currently in talks regarding a merger. US broker Jefferies announced today that the potential combination would be a "win/win" for both parties and a "game changer for the mining sector. "We do expect the Glencore/Xstrata merger to happen, and we would consider this to be an industry transforming transaction in light of the potential for a subsequent acceleration of industry consolidation," analysts said.Nevertheless, the mining sector was broadly lower, with falling metals prices and the IMF's outlook on China doing it bit to provide downward pressure. Vedanta Resources, Antofagasta and Evraz were firmly in the red.However, Randgold Resources was bucking the trend after the west Africa-focused gold miner saw sales in the final three months of last year rise 1.3% over the the previous quarter. Total sales for the three months to the end of December were $314m compared to $310m between July and September. Insurance group Admiral was a heavy faller, pulling back after Friday's strong rise following the announcement that it had extended its existing UK car insurance reinsurance partnerships with Hannover Re, Mapfre Re, New Re and Swiss Re until 2014. Nevertheless, shares are still some 12% up over the last week. Airlines was were under pressure as the weekend's snow storm across the UK forced cancellations at many airports. British Airways owner International Consolidated Airlines, easyJet and Ryanair were in the red in the opening minutes. ON THE FTSE 250... Budget airline easyJet was lower, with the weather not helping, after revealing that passenger numbers nudged 0.4% lower in January. While the load factor improved slightly to 81.9%, it was well under the 12-month rolling average load factor of 87.7%. Natural resources royalties company Anglo Pacific rose after saying it has agreed to a proposal to buy 50% of Red Rock Resources' iron ore royalty in the Mount Ida magnetite project, western Australia. Oil and gas exploration and production firm Premier Oil was in the red after reporting that the East Fyne Appraisal well in the North Sea, which it operates, is being plugged and abandoned. Northern Russia-focused oil group Exillon Energy saw shares edge higher after agreeing a new $100m loan facility, doubling the size of its previous credit line. The money will be used to finance drilling and infrastructure work at its two main sites in Timan-Pechora and West Siberia. Business events organiser and publisher UBM fell after selling off its UK agriculture and medical general practitioner magazines, representing a "further significant step in the transformation of UBM into a set of Events and other B2B marketing, communications, and data services businesses." BCFTSE 100 - RisersCairn Energy (CNE) 338.10p +3.41%Randgold Resources Ltd. (RRS) 7,640.00p +3.24%Lloyds Banking Group (LLOY) 35.02p +1.83%Polymetal International (POLY) 1,185.00p +1.72%Shire Plc (SHP) 2,142.00p +1.52%Man Group (EMG) 138.40p +1.24%British Land Co (BLND) 506.50p +0.70%Imperial Tobacco Group (IMT) 2,405.00p +0.67%Capital Shopping Centres Group (CSCG) 341.00p +0.56%GlaxoSmithKline (GSK) 1,422.50p +0.46%FTSE 100 - FallersGlencore International (GLEN) 462.25p -4.21%Admiral Group (ADM) 995.50p -4.09%Vedanta Resources (VED) 1,308.00p -3.75%Xstrata (XTA) 1,248.50p -2.69%Barclays (BARC) 231.40p -2.55%ITV (ITV) 77.45p -2.39%Essar Energy (ESSR) 130.90p -2.24%Old Mutual (OML) 154.60p -2.03%International Consolidated Airlines Group SA (IAG) 185.90p -2.00%Antofagasta (ANTO) 1,371.00p -2.00%FTSE 250 - RisersNew World Resources A Shares (NWR) 551.50p +8.78%Supergroup (SGP) 711.00p +7.40%RPS Group (RPS) 226.40p +3.14%JD Sports Fashion (JD.) 805.00p +3.07%Gem Diamonds Ltd. (DI) (GEMD) 228.80p +2.97%Smith (DS) (SMDS) 163.20p +2.82%Dixons Retail (DXNS) 14.79p +2.78%TR Property Inv Trust Sigma Shares (TRYS) 66.85p +2.69%Perform Group (PER) 255.00p +2.00%Devro (DVO) 280.60p +2.00%FTSE 250 - FallersOcado Group (OCDO) 102.70p -5.17%Bumi (BUMI) 809.50p -4.76%Petropavlovsk (POG) 773.50p -4.33%Shanks Group (SKS) 106.80p -3.35%Northgate (NTG) 241.10p -3.25%William Hill (WMH) 226.80p -3.16%Chemring Group (CHG) 412.70p -2.89%Hays (HAS) 83.30p -2.86%Fidelity China Special Situations (FCSS) 82.20p -2.72%Kesa Electricals (KESA) 73.00p -2.67%