THE London market made scant progress yesterday as an IMF endorsement of the UK Government’s deficitbusting plans was overshadowed by wider fears over the global recovery.
The FTSE 100 Index closed 8.2 points higher at 5863.2 after the IMF said setbacks to the UK’s economic recovery were temporary and Chancellor George Osborne’s moves to cut the deficit were essential.
But with no economic reports to move the markets, traders continued to focus on dismal US jobs figures released last week.
In London, progress was limited as the eurozone once again came under scrutiny amid fresh concerns over the health of Spain’s economy after a political party claimed one of its largest regions was bankrupt.
Among stocks under pressure, Lloyds Banking Group fell 1.8p to 46.9p after its new chief executive said the problems at the partnationalised bank were more deep-seated than he had imagined and that it will take three to five years to achieve his aims.
The wider banking sector was still dogged by concerns over the pace of the global economic recovery, as Barclays dropped 1.5p to 264p and HSBC eased 1.5p to 625.8p.
British Airways parent International Airline Group (IAG) came under pressure after an industry body warned airlines are expected to make only a fifth of the profits they made last year as higher oil prices increase the cost of flying and deter cashstrapped customers.
IAG, formed following the merger of BA and Spanish carrier Iberia, was down 7.1p at 229.6p, while Thomson Holidays owner TUI Travel dropped 2.6p to 225p.
The biggest rise in the top-tier index came from commodities trader Glencore International, which lifted 10p to 515p.
The rising price of copper and other metals helped miners, as BHP Billiton added 20.5p to 2326p, Kazakhmys advanced 15p to 1278p and Rio Tinto was up 40.5p at 4148p.
Outside the top flight, owner of the SuperDry fashion label SuperGroup, dropped nearly seven per cent after the store slashed prices by 20 per cent at the weekend.
The sale is SuperGroup’s first in the UK and raised fears that the company, which frequently posts forecasting-beating profits, is saturating. Shares were 68p lower at 969p.
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