Miners slip, but FTSE ends in the black

Encouraging consumer confidence numbers in the US and signs that Spain is prepared to get to grips with its banks fuelled a late recovery in the London market yesterday.

The FTSE 100 Index recorded its second successive day of gains after it recovered from a poor start to close 31.57 points higher at 5,575.52.

Chris Beauchamp, market analyst at IG Index, said: “Most of the day was spent in the doldrums, but a stronger-than-expected Michigan consumer confidence reading provided a point from which markets could advance.”

Marks & Spencer was among the biggest risers after Bank of America Merrill Lynch placed a “buy” rating on the retail chain and said it should benefit from a strong summer of events. Shares rose 3 per cent or 12.1p to 360p.

British Airways owner International Airlines Group was 2.4p higher at 165.4p even though rising fuel prices and weak trading at Iberia contributed to a first-quarter loss of £211 million. It still expects to break-even over the year as a whole.

Miners dominated the FTSE 100 fallers board after China’s industrial production growth slowed to 9.3 per cent in April, from nearly 12 per cent in March, raising concerns that the world’s second-biggest economy is weakening.

Eurasian Natural Resources was down 20.5p to 516.5p and Xstrata fell 36p to 1,052p.

Outside the top flight, Thomas Cook shares were 1 per cent lower after it revealed widening losses in the six months to the end of March – they were 58 per cent higher that a year ago at £262.7 million.

The group also reported a slight improvement in UK summer holiday bookings. Shares were down 0.25p at 21.25p, but have still fallen 90 per cent since the start of 2011.

New York: Stocks closed lower after JP Morgan revealed its surprise $2 billion trading loss.

JP Morgan shares dropped more than 9 per cent, pulling down other financial stocks. Most of the decline in the Dow Jones Industrial Average was because of the bank.

The Dow Jones fell 34.44 points, or 0.27 per cent, to close at 12,820.60. The Standard & Poor’s 500 index fell 4.60 points to 1,353.39. The Nasdaq Composite Index was up a fraction of a point at 2,934.