FTSE yo-yos as economic woes compete with industrial data

The FTSE pulled back slightly from earlier lows as investors digested a raft of data on retail sales, mortgage lending and the public finances.

The blue chip index was dragged down below 5,300 by continued fears about the health of the global economy, with similar sized falls seen across Europe’s main stock markets.

The dip came despite advances on US markets overnight and hopes that the Bank of Japan will take further easing measures to curb the strong yen which is hurting its exporters.

In the UK, retail sales volumes rose by 1.1% between June and July, much higher than economists had forecast.

British public-sector net borrowing in July was £3.2 billion compared to £5.5 billion in the same month last year.

Gross mortgage lending in July totalled an estimated £13.6 billion in July, the Council of Mortgage Lenders reported. This was a 5% increase from June but down 3% from July last year.

UK car production fell heavily in July dropping 8.9% on the same month last year.

Among individual stocks, the insurance sector was well represented in the losers’ column, with Standard Life off 1.2% at 205p and Prudential 1.36% lower at 579p. The falls come after bid speculation-led gains for the insurers this week.