London open: Spanish bailout rumours weigh on stocks

2nd Oct 2012 08:40

Following a strong surge the day before, London's FTSE 100 slipped in early trading on Tuesday with concerns about a Spanish bailout weighing on sentiment early on.According to reports, Spain has finally decided to move ahead with its bailout request to the Eurozone, but Germany now wants Madrid to hold off due internal political pressure. On Friday, the southern European country received a long-awaited report noting that its financial sector needs €59.3bn in additional capital. The receipt of the auditory information paves the way for Spain to move ahead with the bailout request for its banks, as well as a larger package for its public finances. In domestic news, house prices are set to remain flat or see a modest decline over the next year, according to the Nationwide building society. Its House Price Index showed the price of a 'typical' UK house rose by 0.4% in September. This was worse than expected, with economists forecasting prices to remain flat compared to August. Evraz drops early onSteel giant Evraz was a heavy faller after Nomura said that the near-term outlook for the steel sector remains weak. "We believe falling steel prices and muted demand will keep 3Q earnings weak, with only limited improvement in 4Q as lower raw material costs start to have an impact," said analyst Neil Sampat.Engineering support firm Babcock rose after saying it was enjoying buoyant markets as customers turned to it to make cost savings.Rumours of a special dividend from Wolseley have proved to be on the money, with the plumbers' merchant paying 40p on top of the full-year divi of 60p. Nevertheless, shares fell early on after reported pre-tax profits fell from £391m to £198m.BP was lower despite news that it won't face claims for damages over the 2010 Gulf of Mexico oil spill brought by recreational users, company-branded gas station owners and businesses alleging loss of reputation, as ruled by a US judge. A US District Judge removed these categories of claims from more than 500 lawsuits.FirstGroup sees strong growth in UK Rail; Andor jumpsFTSE 250 transport firm FirstGroup was in demand after saying that trading in the first half has been in line with its expectations with strong growth being seen in the company's UK Rail division. UK Rail like-for-like (LFL) passenger revenues are expected to rise by 8.1% in the six months to September 30th.Elsewhere, AIM-listed scientific digital cameras maker Andor Technology jumped after announcing its maiden dividend of 2p per share. The group also alleviated concerns about an order from a US customer.FTSE 100 - RisersBabcock International Group (BAB) 946.50p +2.60%Randgold Resources Ltd. (RRS) 7,860.00p +2.54%ITV (ITV) 91.60p +1.83%United Utilities Group (UU.) 733.00p +1.10%Rio Tinto (RIO) 2,970.00p +1.09%Weir Group (WEIR) 1,820.00p +0.94%Fresnillo (FRES) 1,897.00p +0.85%BAE Systems (BA.) 329.50p +0.70%Tesco (TSCO) 333.00p +0.60%International Consolidated Airlines Group SA (CDI) (IAG) 155.20p +0.58%FTSE 100 - FallersARM Holdings (ARM) 575.50p -1.79%Schroders (SDR) 1,549.00p -1.46%Amec (AMEC) 1,139.00p -1.39%Royal Bank of Scotland Group (RBS) 262.80p -1.35%Diageo (DGE) 1,750.50p -1.21%Aberdeen Asset Management (ADN) 315.70p -1.03%Admiral Group (ADM) 1,055.00p -1.03%CRH (CRH) 1,176.00p -0.93%Evraz (EVR) 251.60p -0.83%Aggreko (AGK) 2,307.00p -0.82%FTSE 250 - RisersTelecom Plus (TEP) 851.50p +3.71%Ruspetro (RPO) 108.00p +2.66%Premier Farnell (PFL) 180.70p +2.15%COLT Group SA (COLT) 121.20p +1.93%FirstGroup (FGP) 245.00p +1.87%PayPoint (PAY) 745.00p +1.78%Dixons Retail (DXNS) 20.20p +1.41%BH Global Ltd. GBP Shares (BHGG) 1,151.00p +1.32%Hochschild Mining (HOC) 511.50p +1.29%Savills (SVS) 406.10p +1.27%FTSE 250 - FallersInmarsat (ISAT) 579.00p -2.53%Bank of Georgia Holdings (BGEO) 1,250.00p -2.19%IP Group (IPO) 120.00p -2.12%Diploma (DPLM) 474.90p -1.74%Dialight (DIA) 1,180.00p -1.67%Soco International (SIA) 329.90p -1.64%Jupiter Fund Management (JUP) 250.30p -1.53%Hunting (HTG) 838.00p -1.47%Hiscox Ltd. (HSX) 480.00p -1.40%Fidelity China Special Situations (FCSS) 72.45p -1.36%BC