Any cheer that markets may have derived from news that the Greek government lives to fight another day was swiftly dampened by worries over Italy. Italian bond yields moved to record highs on news that Prime Minister Berlusconi faced a rebellion over structural reforms necessary to alleviate the country’s debt burden.
The FTSE 100 was down 0.3% to 5,511. The European markets also had a weak day’s trading with the CAC 40 and Dax both lower on the day. The US markets also opened weaker by around 0.5%.
Weir Group was one of the day’s biggest fallers, in spite of interim management statement saying that the engineering group was likely to start 2012 with a record order book. Reported orders rose by 27% in the third quarter. The move was thought to be profit-taking on the back of the recent strong run in the shares.
Shares in Carphone Warehouse rose on news that the group is to close its 11 Best Buy stores. The stores were part of a joint venture with US group Best Buy. The stores have failed to make a profit, hit by waning demand for consumer electronics and competition from the internet.
ICAP was the strongest riser on the FTSE 100. It was one of a handful of investment companies that reversed a recent run of weakness – notably Schroders and Ashmore.
Premier Foods was the biggest riser on the FTSE 250 as it revealed that its covenant test, due at the end of December, had been deferred until the end of March 2012. The highly indebted food group, which owns brands such as Mr Kipling and Hovis, now has some much-needed breathing space to improve its position.
SuperGroup clawed back some of its recent falls after its profit warning in early October. It rose 8.8% to 652p on an improved retail picture.
