FTSE slides on metal prices

Tuesday, 27 April 2010 11:12

By myfinances.co.uk staff

The FTSE 100 Index lost 25.93 points, or 0.5 per cent, to 5,727.92 in early trading as stocks retreated, led by a selloff in mining companies as metal prices fell and German Chancellor Angela Merkel said a rescue package for Greece wasn't guaranteed.

Stocks and metal prices fell as concern about potential delays in financial aid for Greece drove investors away from higher-yielding assets. Merkel yesterday said she won't release funds until the nation has a "sustainable" plan to reduce its budget deficit.

Antofagasta retreated 2.4 per cent to 1,038p as all base metals including copper and zinc fell on the London Metal Exchange. Xstrata, the world's fourth-largest copper producer, declined 2.5 per cent to 1,164p.

Petrofac, an oil services provider which today agreed to acquire Deepstore, slid 2.8 per cent to 1,166p, while Tullow Oil fell 1.9 per cent to 1,201p.

Crude oil fell for a second day as the dollar gained and analysts forecast that US crude supplies increased, signaling fuel demand in the world's biggest energy user may be slow to recover.

Lloyds Banking Group meanwhile rallied 2.5 per cent to 71.96p after falling loan impairments helped Britain's biggest mortgage provider return to profit.

The bank said it will make a profit in the first quarter of this year and its financial performance will be better than previously guided.

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