FTSE retreats on falling consumer confidence

Wednesday, 06 January 2010 10:19

The FTSE 100 Index retreated from a 16-month high this morning as Marks & Spencer Group declined and consumer confidence fell the most in more than a year.

The index slipped 12.19 points, or 0.2 per cent, to 5,510.31 as of 9:30 a.m led by Marks & Spencer which slid 4.7 per cent to 385.7p after reporting a sales increase that some analysts said missed estimates. The retailer said revenue at stores open at least a year rose 0.8 per cent in the fiscal third quarter. The sales were "marginally below" estimates, according to Morgan Stanley analysts. Marks said that unlike last year, the figures didn't include the first day of its clearance sale, which would have added 1 per cent to the sales growth.

Petrofac dropped 2.8 per cent to 1,002p as the oil and gas facilities service provider was downgraded to "underweight" from "equal weight" as Morgan Stanley recommended investors sell the stock. Meanwhile, Royal Bank of Scotland climbed 3.1 per cent to 36.49 pence the biggest gain in the benchmark FTSE 100 today.

Consumer confidence in the UK fell in December by the most in more than a year as expectations for the economy deteriorated, Nationwide Building Society said. The index of consumer sentiment declined five points from the previous month to 69, the biggest drop since November 2008, the customer-owned lender said. A measure of consumers' economic expectations in the next six months fell eight points to 101.

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