FTSE accumulates losses in cautious midday trade

MIDDAY REPORT: Headline shares added to early losses in midday trade, with investors cautious ahead of critical US employment data this afternoon, and with bank and miners creating much of the downward pressure.

At high noon, the FTSE100 was down 46.24 points at 5,615.89 with the FTSE250 off 41.8 points at 10,723.8 and the FTSE Smallcaps 3.03 points lower at 3,040.45.

The focus of attention today on both sides of the Atlantic is US non-farm payroll data which will give an indication of whether growth there has stalled.

In London this morning, the usual suspects (banks and miners) accounted for the fall in the main index, with Mexico’s Fresnillo the biggest loser of the session, slumping 56p at 1,233p as precious metals prices fell back from recent highs.

Randgold Resources eased 60p at 6,315p and African Barrick dipped 10.5p at 599.5p. Lonmin was the only miner to register a gain, up 11p at 1,761p.

Oil producers slipped on demand concerns and the price of crude slipped back towards $80 a barrel. BP fell 3.75p at 433.3p and Shell lost 12.5p at 1,894.5p.

Barclays created a stir in the banking sector, slumping 8.5p at 295.5p on yesterday’s late news that Nomura is selling up to £649m worth of shares on behalf of Abu Dhabi’s ruling family in a hedging exercise.

Elsewhere, Royal Bank of Scotland edged down 0.8p at 47.02p and Lloyds Banking Group eased 0.99p at 72.91p.

Commercial property was out of fashion, with Land Securities leading the blue chip REITs lower, off 18p at 699p. Hammerson fell 2.3p at 414.4p and British Land weakened 7.4p at 488.5p.

Midcap holiday operator Thomas Cook brought the leisure sector into focus this morning after announcing it is to merge its high street outlets with Co-operative Travel in a deal likely to save $35m annually.

Thomas Cook shares jumped 5.7p at 185.3p in response, while blue chip peer TUI Travel slipped 2.1p at 222.3p.

On the limited upside with blue chips, aerospace engineering groups were in well represented, with Rolls-Royce up 3.5p at 595.5p and BAE Systems heading the leaderboard, ahead 3.9p at 354p.

Other notable blue chip successes included oil services group AMEC, up 5.5p at 996p, car insurer Admiral Group, 7p better at 1,606p, and broadcaster BSkyB, ahead 1p at 708.5p.