FTSE: 5,928.61 (–61.38) Mid-250: 12,009.84 (–50.95) Small Cap: 3,302.28 (+9.16):THE LONDON market closed in the red yesterday after disappointing jobs data in the US reignited fears over the strength of the global economic recovery.
Private employers in the US added just 38,000 jobs in May, down from 177,000 in April, according to payroll processor ADP.
The FTSE 100 index, already weighed down by disappointing manufacturing figures in the UK, closed 61.4 points down at 5,928.6 as the US data pushed it lower.
The top flight was also impacted by a number of companies going ex-dividend, meaning they are trading without the right to the latest shareholder payout.
Those fallers included Vodafone, which dropped 7.4p to 161.6p, while Marks & Spencer was down 12.5p to 386.4p, a decline of 3 per cent.
On a brighter note, sentiment towards fashion label Burberry remained strong in the wake of its recent full-year results, which showed a 39 per cent increase in underlying pre-tax profits to £298 million. Shares were 7p higher at 1326p.
Other risers included security services group G4S, which topped the risers board, after a broker upgrade lifted shares 5.1p to 291p.
Miners were lifted by the impact of a weaker dollar on commodity prices. Those on the way up included Rio Tinto, which lifted 10p to 4255p, while Fresnillo added 20p to 1478p.
Outside the top flight, Tate & Lyle rose 5 per cent as analysts continued to applaud last week’s figures from the sweetener group that showed underlying annual profits rose by 34 per cent. The shares were up 31p to 651.5p.
In corporate news, Bathstore owner Wolseley and floor coverings firm Topps Tiles were both under pressure amid tough trading conditions in the UK. Updates from the pair highlighted the ongoing squeeze on spending levels among consumers, leading to disappointing sales figures.
Wolseley shares were nearly 2 per cent lower or 37p cheaper at 2021p after UK profits fell by 10 per cent to £28 million in the three months to April 30th. However, this was offset by stronger-than-expected trading in the US.
Topps Tiles was 6 per cent lower in the FTSE 250 index, declining 3.8p to 63.8p, after it said like-for-like sales decreased 2.1 per cent in the last seven weeks, compared with an increase of 1.8 per cent over the six months to April 2nd – (PA).