Market overview: FTSE closes up one point at 5352

May 25, 2012

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16:30 Today saw several developments abroad, with reports of weak Chinese bank lending, consumer confidence remaining stable in Germany, and Spain announcing a halt on the trading of shares in troubled lender Bankia. Remarks by the President of the Spanish region of Catalonia also drove that country's bond yields higher in early evening trading. Meanwhile, Eurozone leaders reiterated that they want the Hellenic Republic to stay in the single currency, but only if it keeps to its commitments to be fiscally responsible and follow its bailout terms. In UK companies, both financials and miners were taking a hit, as the reports out of China exacerbated concerns over a slowdown in the world's second-largest economy which is a source of strong demand for commodities. The FTSE-100 closed up one point at 5,352.

15:39 The top-share index is barely changed, reflecting a mixed start on Wall Street. Tullow Oil is wanted after it inadvertently broke good news at an investors meeting in Nairobi. The company indicated that the Ngamia-1 well in Kenya was drilling into the primary target and that initial results appeared to indicate that the well had intersected further oil bearing sands. FTSE 100 is down 9 at 5,341.

13:40 With US stock futures pointing to a weak start on Wall Street, UK blue chip have been pushed further into the red. Mining stocks are firmly out of favour today on reports that China's banks could miss their 2012 loan targets, exacerbating concerns over a slowdown in the world's second-largest economy which is a source of strong demand for commodities. Vedanta, Fresnillo, ENRC and Xstrata are among the worst performers. Banking stocks Lloyds and Barclays are also registering moderate losses, tracking their European counterparts lower on Eurozone concerns. FTSE 100 down 33 at 5,317.

11:30 The top share index has fallen into the red, possibly due to the nervousness surrounding the Eurozone periphery. While it ought not to be exaggerated, troubled Spanish lender Bankia's decision to postpone the release of its recapitalization plans until Saturday may contribute to market jitters, particularly ahead of the long weekend Stateside. Despite that backdrop, retailers such as Dixons Retail and Marks and Spencer are doing well today, possibly buoyed by a positive update out from John Lewis. Exane BNP has upgraded shares of Aviva to outperform from underperform. Nomura, on the other hand, has lowered its price targets on Bumi and ENRC. Bid-to-cover ratios dropped at this morning's auctions of 1 and 3 month bills by the UK Debt Management Office. FTSE 100 down 5 to 5,345.

10:27 Whereas French government debt was earlier hitting record lows Spanish 10-year bonds have reversed course somewhat, paring some of their earlier gains. Of interest on this side of the Channel, remarks attributed to Standard and Poor's analysts to the effect that the UK's and Germany's sovereign debt ratings are safe. As an aside, according to German publication Der Spiegel, Germany is preparing a six point plan for growth in Europe. Meanwhile, in Spain, there is speculation that the release of the recapitalisation plans of nationalised lender Bankia may be delayed. FTSE 100 is up 10 to 5,360.

09:52 UK stocks are holding higher despite the latest polls showing the hard-left Greek party Syriza maintaining a 4 point lead over its nearest rival. Against that backdrop many eyes are now trained on Spain, after troubled lender Bankia's shares were halted this morning. Some reports hold that its recapitalization plan may not be announced until tomorrow, when markets will be closed. Back in London, and on the equity front, the only obvious pattern to trading today are the slight falls to be seen in shares of miners. United Utilities and Pennon may gain on the back of positive 'broker talk'.

08:38 Footsie has put its best foot forward at the start of what is shaping up to be a quiet day in the markets. Holiday Inn and Crowne Plaza owner InterContinental Hotels Group (IHG) has announced that its Chairman is to retire at the end of 2012. The market has taken the news in its stride. He will be replaced by Patrick Cescau, former Unilever Chief Executive Officer (2005-2008). In the mid-caps, Cape, the energy and mineral resources services provider, has been hammered after it revealed that its full-year profits will be held back by a 14m pounds charge related to its GL3-Z LNG (liquefied natural gas) Project in Arzew, Algeria. FTSE 100 is up 17 at 5,367.