FTSE flat as ECB pours in more funds
The FTSE 100 was flat this morning with investors awaiting another injection of cash from the European Central Bank, aimed at propping up the Eurozone.
The ECB is expected to pump about 500bn euros (£422bn) into the Eurozone’s financial system to fight the region’s debt crisis, enabling banks to tap as many of the ultra-cheap, three-year loans as they like. It will be the second cash injection since December.
In the UK Bank of England figures showed that mortgage approvals numbered 58,728 in January, up from an upwardly revised 55,019 in December and well above analysts’ expectations for a reading of 53,700.
However, in a sign that many Britons remain cautious, the data also showed that credit-card and other unsecured lending remains largely flat.
Banks were firmer ahead of the ECB’s announcement, but their gains were offset by weakness in miners.
Stocks going ex-dividend dented the blue chip index with mining heavyweights BHP Billiton and Rio Tinto, together with drinks firm Diageo, all losing their payout attractions and retreating after gains in the previous session.
Broadcaster ITV was up 6.5 per cent after it reported a better than expected 13 per cent rise in adjusted earnings for the year, driven by growth in its own productions against a flat backdrop for advertising.
British Airways owner IAG’s shares climbed 3.9 per cent after it reported a rise in full-year profits, helped by higher than expected cost savings from the BA-Iberia merger, but warned cost pressures would hit profit in 2012.
Engineer Weir Group topped forecasts with a 34 per cent surge in 2011 profit, buoyed by the booming shale oil industry in North America and a pick-up in spending amongst mining clients. However, its stock dipped by just over one per cent.
Essar Energy was the steepest faller on the FTSE 100, down 5.3 per cent, as Credit Suisse cut its rating to “neutral” from “outperform” on short-term financing concerns.
In banking Lloyds nudged up 0.2 per cent and Barclays O.8 per cent.
The company has been tied up in red tape on some of its licences in India and is in a long running battle with the tax authorities there.
In global economic news figures showed that India’s GDP growth had fallen to lowest rate in three years.
Meanwhile in Asia the Nikkei was broadly flat and the Hang Seng up 0.5 per cent.