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London close: FTSE plunges 1.2% as winning streak ends on Greek fears

Tue, 26th May 2015 16:35

Heavy losses in the mining, banking and sectors weighed heavily on UK stock markets on Tuesday, as uncertainty in Greece and mixed economic data from the States hammered risk appetite among investors.The FTSE 100, which had been trading with moderate losses for most of the day, experienced a sell-off late on following a weak start on Wall Street and finished down 82.73 points (-1.18%) at 6,948.99. This marked the index's first decline in six trading sessions.According to analyst Jasper Lawler from CMC Markets, "political turbulence" in Greece was driving risk-averse sentiment across European markets after reports that talks between Athens and creditors scheduled for Wednesday were cancelled. "The market reaction on Tuesday is more consistent with a belief Greece maybe on the cusp of default," Lawler said.Meanwhile, rumours that Greek Finance Minister Yanis Varoufakis was considering a tax on cash machine withdrawals have also worried investors, raising fears about a run on Greek banks.Meanwhile, Interior Minister Niko Voutsis said on Sunday that the government simply won't have the money it is due to repay the International Monetary Fund next month unless it agrees a deal with international creditors over further aid. Greece is due to repay €1.6n to the IMF between 5 June and 19 June.A barrage of US economic data also kept market participants busy on Tuesday: durable goods orders fell 0.5% as expected, house prices increased a less-than-forecast 0.3%, service-sector growth eased for a third month in a row, new home sales rose more than anticipated, while consumer confidence unexpectedly increased.Mining, oil and banking stocks fallThe mining sector finished in the red with precious metals peers Fresnillo and Randgold faring the worst as gold and silver prices fell 1.3% and 1.7% on a stronger dollar respectively. Other diversified miners such as BHP Billiton, Anglo American, Rio Tinto and Glencore also finished firmly lower.Similarly, weaker oil prices were weighing on shares of Shell, BP, BG Group, Tullow Oil and Premier Oil, with Brent crude down 2.8%.Banking shares were also sold off, such as RBS, Lloyds, HSBC, Barclays and Standard Chartered, as risk appetite waned.Even stocks in defensive sectors, which typically perform well in times of market sell-offs, ended lower, including utility groups Centrica and United Utilities and pharmaceutical peers Hikma and Glaxosmithkline.Royal Mail was among the few risers after Cantor Fitzgerald upgraded the postal delivery business from 'sell' to 'hold' and hiked its target price from 440p to 500p.Software group Micro Focus gained after reiterating its guidance to treble annual revenues on the back of a strong finish to its financial year, helped by the first contribution from its merger with The Attachment Group.Cineworld also impressed with like-for-like revenue growth of 10.7% in its first quarter, with a stream of blockbuster films expected to deliver a strong box office year ahead.Irish airline Ryanair surged after posting a 66% rise in full-year profit after tax as passenger numbers grew more than three times the company's targeted level. Rival carrier Easyjet also finished higher, along with travel-sector peer and cruise operator Carnival, bolstered by falling oil prices.Market MoverstechMARK 3,283.87 -0.57%FTSE 100 6,948.99 -1.18%FTSE 250 18,098.81 -0.52%FTSE 100 - RisersRoyal Mail (RMG) 521.50p +3.58%Weir Group (WEIR) 2,002.00p +3.36%easyJet (EZJ) 1,616.00p +1.57%Carnival (CCL) 3,181.00p +1.24%Aggreko (AGK) 1,606.00p +0.69%Smith & Nephew (SN.) 1,140.00p +0.53%Barratt Developments (BDEV) 598.50p +0.50%International Consolidated Airlines Group SA (CDI) (IAG) 544.50p +0.37%BT Group (BT.A) 452.05p +0.22%Taylor Wimpey (TW.) 184.80p +0.22%FTSE 100 - FallersFresnillo (FRES) 736.00p -3.54%Randgold Resources Ltd. (RRS) 4,611.00p -3.52%CRH (CRH) 1,776.00p -3.11%Royal Bank of Scotland Group (RBS) 345.20p -2.79%Hikma Pharmaceuticals (HIK) 2,083.00p -2.75%Centrica (CNA) 273.20p -2.60%United Utilities Group (UU.) 977.00p -2.50%Anglo American (AAL) 1,036.50p -2.45%Antofagasta (ANTO) 755.50p -2.39%BHP Billiton (BLT) 1,375.00p -2.38%FTSE 250 - RisersKeller Group (KLR) 1,027.00p +2.80%Cable & Wireless Communications (CWC) 69.35p +2.44%Countrywide (CWD) 589.00p +2.26%Fidelity China Special Situations (FCSS) 177.30p +2.19%Ted Baker (TED) 2,892.00p +2.15%Alent (ALNT) 375.50p +1.98%Bwin.party Digital Entertainment (BPTY) 108.70p +1.87%Savills (SVS) 962.50p +1.80%Balfour Beatty (BBY) 258.70p +1.57%Poundland Group (PLND) 319.30p +1.46%FTSE 250 - FallersSynergy Health (SYR) 2,164.00p -4.59%Evraz (EVR) 173.70p -4.51%Tullow Oil (TLW) 396.40p -4.46%Brown (N.) Group (BWNG) 326.80p -3.88%Premier Oil (PMO) 158.90p -3.58%Investec (INVP) 624.00p -3.55%Acacia Mining (ACA) 290.20p -3.17%Fidessa Group (FDSA) 2,192.00p -2.92%Vedanta Resources (VED) 616.00p -2.61%Vesuvius (VSVS) 449.50p -2.60%
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