London close: Glencore drags Footsie 1% lower

The blue chip index slipped further into the red on the back of a poor start on Wall Street as economic data disappointed. US May consumer price index came in ahead of forecasts, rising 0.2%. While the Federal Reserve Bank of New York manufacturing sector index fell to a reading of -7.79, from 11.9 the month before. Furthermore, the Greek crisis continues to simmer with reports in the afternoon that the Prime Minister may step down. Back in the UK, Glencore was the worst performing stock on the blue chip index as of Wednesday afternoon. In a brief statement in response to press speculation, the commodities trader stated that it is not actively considering an offer for Kazakh mining company Eurasian Natural Resources Corporation (ENRC). The official statement backs up quotes in the UK press by Glencore's chief executive yesterday, Ivan Glasenberg. ENRC and sector peer Xstrata (in which Glencore holds a 34% stake) were also under the weather. Weighing on Glencore shares today as well, reports that management now sees a coming slowdown in demand, for commodities, from China, and to a lesser degree from the US. Oil groups Petrofac and Cairn Energy were tracking oil prices lower. At the close in London, Brent crude futures were falling lower 1.22% lower (-$1.47) to $118.69.The banking sector was unwanted on reports the British banks could be forced to ring-fence their retail and investment operations. The idea is to protect high street bank customers losing their savings if investment bankers suffer heavy losses, as they did during the financial crisis of 2008. Barclays, RBS, HSBC, Lloyds and Standard Chartered were all lower. British Land was heading higher after welcoming the government's decision not to list the Broadgate office development in the City of London. The company can now go ahead with its planned £850m redevelopment of the site on behalf of its tenant, the Swiss financial services group UBS. Real estate peer Land Securities was also higher.Credit checking firm Experian was off the mark on the back of reports that have suggested that US regulation could be extended to credit bureaus operating in the country. Sainsbury was heading lower despite like-for-like sales coming in line with expectations. "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough consumer environment," said chief executive, Justin King. Insurance colossus Aviva has confirmed RBS non-executive director John McFarlane will be its new chairman. Shares were lower. Meanwhile, the retailers were falling lower on the FTSE 250 ahead of UK retail sales figures due to be released on Thursday. Supergroup, Dixons Retail and Home Retail are among the worst performers, with Supergroup falling over 6%. ---BCFTSE 100 - RisersTUI Travel (TT.) 215.10p +1.80%Whitbread (WTB) 1,536.00p +0.59%Land Securities Group (LAND) 841.50p +0.48%British Land Co (BLND) 591.50p +0.42%Morrison (Wm) Supermarkets (MRW) 295.90p +0.24%Smith & Nephew (SN.) 657.00p +0.23%Capital Shopping Centres Group (CSCG) 386.80p +0.21%Hammerson (HMSO) 478.60p +0.04%FTSE 100 - FallersGlencore International (GLEN) 473.00p -5.40%Petrofac Ltd. (PFC) 1,515.00p -3.56%Man Group (EMG) 232.60p -3.16%Barclays (BARC) 257.40p -2.70%Xstrata (XTA) 1,259.50p -2.59%Schroders (SDR) 1,547.00p -2.46%ICAP (IAP) 456.60p -2.44%3i Group (III) 267.30p -2.41%Eurasian Natural Resources Corp. (ENRC) 744.00p -2.30%Fresnillo (FRES) 1,346.00p -2.25%