Thursday lunchtime market update

Dec 17 2009 By nebusiness

THE FTSE 100 Index fell almost 1% today after a stronger US dollar caused commodity and oil stocks to retreat.

The greenback surged to three-month highs after the US Federal Reserve signalled it would start undoing some of its emergency support next year as the economic recovery gathers pace.

This weakened the lure of commodity-based stocks, with Antofagasta down 27p at 916.5p and Kazakhmys off 31p to 1261p. Overall, the Footsie was 48.7 points lower at 5271.4 by mid-morning.

Meanwhile, an uncertain week for banking stocks continued after Barclays shed 8.6p to 283.4p and Standard Chartered fell 33p to 1554.5p. Part-nationalised Lloyds Banking Group was the biggest faller with a drop of 2.4p to 53.2p.

Retailers also struggled after official figures for November showed the first fall in sales since May, fuelling fears over Christmas trading.

Marks & Spencer fell 2.4p to 399.6p and B&Q owner Kingfisher declined 6.2p to 226.9p, while in the FTSE 250 Index Currys owner DSG International dropped 1.1p to 34.3p, fall of 3%.

Among firms issuing end-of-year trading updates, property firm Savills surged 4% after it said continued strength in the Asian property market and an increase in UK commercial transactions had given a bigger than expected boost to 2009 trading. Shares were 11.3p higher at 301.3p.

Construction and regeneration group Morgan Sindall was not far behind as it said it expected to meet its expectations for 2009, despite a smaller order book of £3.2 billion at the end of the year. Shares were 22p higher at 622p.

Car dealership Inchcape also lifted 0.25p to 28.35p after forecasting results slightly ahead of expectations.

Builders’ merchant Travis Perkins made similar comments but shares fell 8.5p to 806p as the company issued a cautious forecast on 2010 prospects.