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Tuesday Morning Market Update: Poor retail and housing sales add to woes

By Phil Cozens | 10:07:44 | 11 November 2008

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Markets remain cautious in the wake of another raft of grim economic data that underlines current recession woes.

By 10am the FTSE 100 index had extended its early fall to 4,310, down 94 points as oils and miners succumbed to profit-taking following fresh evidence of China's economic slowdown.

The Mid-250 index was 120 points easier at 6,536.

On the economic front the UK September trade gap narrowed to £7.482 billion.

Vodafone remained the day's brightest performer at 116.6p, up 8.3p, as profits fell short of analysts' worst expectations, although brokers' reactions were  mixed.

Collins Stewart and Investec maintained their sell ratings, while Cazenove kept its outperform stance.

Elsewhere Inmarsat picked up another 9p to 428p after positive comment on yesterday's figures and Tesco recovered 2.7p to 325p, also helped by encouraging broker comment.

Among the main fallers Lonmin at £11, London Stock Exchange 617.5p, Lloyds TSB 935.5p and RSA Insurance 134.2p stood out with losses of 7.8p to 84p.

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