London open: Footsie sinks to 5,300 early on

21st Nov 2011 08:28

The Footsie sunk towards the 5,300 level in early trading with worrying economic news from Asia weighing on sentiment. Also impacting market sentiment negatively, reports that a U.S. congressional super-committee may have failed to reach an agreement on which budget deficit reduction measures are needed. No less important, at first glance the first reactions by some analysts to the Spanish Presidential election results, last night, seem a bit mild at best. London's blue chip index now trades at levels not seen since early October.STOCKS FOLLOW ASIAN MARKETS LOWERAsian markets dropped lower this morning as the latest economic data provided a drag. Japan's Ministry of Finance revealed that exports fell by an annual rate of 3.7% last month, the first decline in three months, as shipments to China, the US and Europe weakened. Furthermore, with imports rising 18% due to increased energy prices, the nation registered a deficit of 2.738bn yen. Singapore's government expect that the nation could grow by just 1-3% in 2012, down from the 5%-expected growth in 2011. Meanwhile, Spain has voted the centre-right Popular Party to power hoping that party leader Mariano Yajoy will be able to bring an end to the country's mammoth debt troubles. "There will be no enemies for me other than unemployment, the deficit, excessive debt and economic stagnation," Rajoy said.RESOLUTION, PHOENIX HEAD OPPOSITE DIRECTIONS AFTER TERMINATING DISCUSSIONSInsurance giant Resolution fell over 3% lower after confirming that talks regarding the possible acquisition of Phoenix Group have been terminated. Phoenix, on the other hand, roared over 13% higher on the FTSE 250 after saying that it has received a number of approaches from other parties, most notably private equity firm CVC Capital Partners. Centrica was a rare bright spot after signing a deal with the Norwegian company Statoil to buy £13bn worth of gas over ten years. In a separate transaction, Centrica has also announced it is to buy some of Statoil's assets in the Norwegian sector of the North sea for £965m, with a further £63m to be paid on the future performance of the assets. Capital Shopping Centres fell lower after it put in place a £375m revolving credit facility, replacing the existing undrawn facility of £248m which is due to expire in June 2013. Miners Fresnillo, Randgold Resources and Kazakhmys were among the worst performers, with signs of a slowdown in Asia likely fuelling demand concerns.BCFTSE 100 - RisersEssar Energy (ESSR) 247.00p +1.65%Capita Group (CPI) 643.50p +0.55%Centrica (CNA) 289.90p +0.35%Intertek Group (ITRK) 1,909.00p +0.05%FTSE 100 - FallersHargreaves Lansdown (HL.) 456.00p -4.16%Johnson Matthey (JMAT) 1,790.00p -3.09%Resolution Ltd. (RSL) 241.20p -3.09%Fresnillo (FRES) 1,664.00p -2.75%Randgold Resources Ltd. (RRS) 6,995.00p -2.30%Royal Bank of Scotland Group (RBS) 20.11p -2.24%British Land Co (BLND) 458.80p -2.22%ARM Holdings (ARM) 585.00p -2.17%Kazakhmys (KAZ) 844.00p -2.14%Lonmin (LMI) 999.50p -2.11%FTSE 250 - RisersPhoenix Group Holdings (DI) (PHNX) 555.00p +12.78%Sports Direct International (SPD) 246.40p +5.71%BBA Aviation (BBA) 176.20p +3.04%Heritage Oil (HOIL) 190.80p +2.86%Diploma (DPLM) 310.00p +2.55%Shanks Group (SKS) 108.70p +1.87%Moneysupermarket.com Group (MONY) 107.80p +1.41%Kenmare Resources (KMR) 36.24p +1.34%Mothercare (MTC) 134.70p +1.28%Anglo Pacific Group (APF) 280.00p +1.08%FTSE 250 - FallersAllied Gold Mining (ALD) 165.10p -4.84%Dixons Retail (DXNS) 10.23p -3.49%Aquarius Platinum Ltd. (AQP) 172.80p -3.30%London & Stamford Property Ltd. (LSP) 113.30p -3.16%Exillon Energy (EXI) 285.10p -3.16%Drax Group (DRX) 551.00p -3.08%Cape (CIU) 326.00p -2.92%Euromoney Institutional Investor (ERM) 661.50p -2.72%Great Portland Estates (GPOR) 327.00p -2.68%Centamin Egypt Ltd. (CEY) 96.40p -2.63%