SPECULATION over plans to tackle eurozone debt and disappointing earnings from US investment bank Goldman Sachs led to losses on the London market yesterday.

The FTSE 100 Index closed 79.7 points lower at 5976.7 after Goldman reported a 53 per cent plunge in fourth-quarter profits, due to sharp declines in its investment banking businesses.

Barclays, which has also been troubled by a fine and compensation order totalling £67m this week from the Financial Services Authority, dropped more than three per cent or 11.6p at 296.1p.

Sentiment was weak across the FTSE financials, as HSBC lost 5.2p at 704.1p, Lloyds dropped 1.6p to 66.2p and investment bank Investec eased 12.5p at 513p.

Financial Times publisher Pearson headed gains on London’s FTSE 100 after it raised guidance for a key earnings target in an upbeat trading statement.

The group’s shares rose 45p to 1051p, or four per cent.

But the focus was largely outside the top flight after the latest flurry of updates.

William Hill shares rose 12.3p to 189p as it said the weather conditions that decimated sporting fixtures in the run-up to Christmas may not have been as damaging to its business as many feared.

Rival Ladbrokes benefited from the cheer, up 3.2p to 135.3p.

Pub chain JD Wetherspoon followed the firms with a 23p gain to 464.7p after sales growth almost doubled to three per cent in the 12 weeks to January 16, up from 1.6 per cent in the previous quarter.

Trading conditions were less favourable in the consumer goods sector, as- Comet owner Kesa warned it expected to make a full-year loss in the UK.

With the company bracing the City for results at the bottom end of expectations, shares slumped 14.8p to 136p.