London open: Shire provides a drag early on

25th Jun 2012 08:23

- Shire tumbles after generic ADHD deal gets approval- Polymetal rises after broker upgrade- Investors look to EU summitBanking and mining stocks were providing a drag in London on Monday morning, as investors showed caution ahead of the EU summit later this week.Trader Jordan Lambert from Spreadex said: "In the absence of any economic data overnight in Asia and during today we are seeing the troubles of the Eurozone resonating throughout the market as the main focus yet again."Meanwhile, analyst Craig Erlam from Alpari thinks that stocks and other risky assets are likely to "struggle" this week. "There are ongoing concerns that we are still not seeing the tough decisions being made by the Eurozone leaders to get the economies moving again," he said.Investors will be looking ahead to the crucial European Union summit on June 28-29th, where a banking union will be discussed along with measures to boost growth.Meanwhile, debt auctions in both Italy and Spain will be in focus for the markets this week.FTSE 100: Shire plummets after FDA disappointmentShares in pharmaceutical giant Shire tanked in early trading after the US Food and Drug Administration approved a rival's application to make a generic version of its attention deficit and hyperactivity disorder (ADHD) drug, Adderall XR.Also out of favour was Morrisons after the supermarket group announced that its Finance Director Richard Pennycook is to leave next year to concentrate on building a "portfolio career".Banking stocks and miners were registering losses as investors fled from risk. Lenders Lloyds and RBS were lower, while BHP Billiton and Rio Tinto fell after UBS cut earnings forecasts for both companies by 4%.Anglo American and Chile's Codelco have agreed to extend talks as they seek to negotiate an agreement in their bitter battle over the former's Anglo Sur assets. The argument centres around state-owned copper firm Codelco announcing it wanted to exercise an option to buy 49% of Anglo Sur. Anglo edged lower in the opening minutes.Precious metals miner Polymetal was gaining after Nomura upgraded the stock by two notches from 'reduce' to 'buy', saying that "now that Polymetal has passed the FTSE re-weighting, we believe that these levels provide a decent entry point." SABMiller was lower after Liberum Capital downgraded the stock to 'sell'.FTSE 250: Premier Oil abandons dry hole in the UKPremier Oil fell after plugging and abandoning two exploration wells. The Coaster exploration well in Block 28/10 (UK) was found to be a "dry hole", while the Benteng-1 well (Indonesia) was labelled as "a small but potentially commercial oil discovery."Industrial property specialist Segro fell despite selling four "non-core" industrial estates for £204.5m.Essar Energy, the India-focused integrated energy company, was in the red despite saying that the first of two 255MW units at its Vadinar Phase 2 power plant has been synchronised with the transmission grid. FTSE 100 - RisersPolymetal International (POLY) 925.00p +1.26%Hammerson (HMSO) 432.50p +1.26%British Sky Broadcasting Group (BSY) 668.50p +0.45%Randgold Resources Ltd. (RRS) 5,710.00p +0.35%BP (BP.) 408.65p +0.34%British Land Co (BLND) 501.50p +0.20%Hargreaves Lansdown (HL.) 502.00p +0.20%Pearson (PSON) 1,205.00p +0.17%Royal Dutch Shell 'B' (RDSB) 2,177.00p +0.16%Centrica (CNA) 307.60p +0.16%FTSE 100 - FallersShire Plc (SHP) 1,783.00p -9.31%Morrison (Wm) Supermarkets (MRW) 262.60p -2.16%Rio Tinto (RIO) 2,925.00p -1.91%SABMiller (SAB) 2,460.50p -1.74%Lloyds Banking Group (LLOY) 30.89p -1.61%Royal Bank of Scotland Group (RBS) 240.00p -1.32%Antofagasta (ANTO) 1,034.00p -1.15%Vedanta Resources (VED) 893.50p -1.11%ARM Holdings (ARM) 500.50p -1.09%Reckitt Benckiser Group (RB.) 3,395.00p -1.08%FTSE 250 - RisersRuspetro (RPO) 142.00p +4.26%NMC Health (NMC) 200.00p +3.09%Greene King (GNK) 530.00p +2.02%Bumi (BUMI) 330.20p +1.94%Petropavlovsk (POG) 463.10p +1.71%JPMorgan Indian Inv Trust (JII) 323.00p +1.57%Ted Baker (TED) 915.50p +1.33%Perform Group (PER) 390.00p +1.30%Rathbone Brothers (RAT) 1,240.00p +1.22%Menzies(John) (MNZS) 573.00p +1.15%FTSE 250 - FallersFerrexpo (FXPO) 206.00p -2.92%Fenner (FENR) 349.00p -2.51%Imagination Technologies Group (IMG) 472.90p -1.87%Home Retail Group (HOME) 81.45p -1.69%CSR (CSR) 215.30p -1.69%Halfords Group (HFD) 247.50p -1.67%Hays (HAS) 72.85p -1.55%Genesis Emerging Markets Fund Ltd. (GSS) 459.30p -1.52%Afren (AFR) 100.40p -1.47%Berkeley Group Holdings (The) (BKG) 1,316.00p -1.42%BC