Tuesday July 8, 12:26 PM
London midday: Recession fears hit shares
LONDON (ShareCast) - Miners and financials drag London lower following heavy falls on Wall Street overnight and after the British Chambers of Commerce described the economic situation here as 'grim and ominous'. A slide in metal prices
sees the likes of Anglo American (LSE: AAL.L - news) , Antofagasta (LSE: ANTO.L - news) , Rio Tinto (LSE: RIO.L - news) and BHP Billiton (LSE: BLT.L - news) beat a retreat, while Lonmin (LSE: LMI.L - news) falls despite Deutsche Bank (Frankfurt: DB9999 - news) raising its rating on the stock to "buy" from "hold". The German bank says shares in the platinum miner are now 27% off its 3,485p target price.Among financial blue-chips London Stock Exchange (LSE: LSE.L - news) is the worst performer, followed by Royal Bank of Scotland (LSE: 91ID.L - news) , Lloyds TSB and Barclays (LSE: BARC.L - news) . Among second-line banking stocks In the FTSE 250 (news) , Bradford and Bingley (LSE: BB.L - news) is taking a battering again, with fellow bank Alliance and Leicester (LSE: AL.L - news) also slipping back. Marks and Spencer (LSE: MKS.L - news) provides a rare ray of cheer as it rallies from its recent mauling following its profit warning last week. Drugs giants GlaxoSmithKline (LSE: GSK.L - news) and AstraZeneca (LSE: AZN.L - news) also advance as investors seek cover in defensive stocks. House builder Persimmon (LSE: PSN.L - news) is down but not out after saying it does not expect to announce any significant write down of its land values with its next interim results. It has cut 1,100 jobs to save £20m per year. First half sales were £1bn, a reduction of 34% on the first half of last year. Investec (LSE: INVP.L - news) has lowered its rating on Cadbury (Munich: A0NJP5 - news) to 'sell' from 'hold' on valuation grounds and lowered its target price on the chocolate manufacturer to 550p from 600p. JP Morgan has raised its price target on Arriva by 100p to 905p and kept its 'overweight' rating on the bus and rail operator, pointing to its strong exposure to bus operations. Estate agent Savills (LSE: SVS.L - news) slumps after revealing trading conditions for its UK and US Commercial Capital Markets businesses and its UK Residential and Mortgage Broking businesses have continued to deteriorate with volumes down significantly on the comparable period in 2007. Predictions for the full year outcome are "very difficult". IT services group Morse (LSE: MOR.L - news) 's chief executive has departed after sales and margins disappointed in the year just ended. Online gamer PartyGaming (LSE: PRTY.L - news) says gross revenues have fallen since April due to seasonality and competition from Euro 2008. Casino (Paris: FR0000125585 - news) perfromed strongly, offset by a weaker than expected performance in poker and sports betting. Overall revenues were slightly lower than expected. A profits warning has also come from windows group Heywood Williams (LSE: HYWD.L - news) , with full year profit expected to come in significantly below market expectations. Drug developer SkyePharma (LSE: SKP.L - news) has lost a quarter of its value as investors grow impatient at the firm's failure to make progress with plans to renegotiate or refinance its convertible bonds. The few risers include alcohol tester Concateno (LSE: GB00B06LBN62.L - news) , which has confirmed a bid approach. Ithaca Energy (IAE.V - news) 's rejection of Endeavour International (END - news) 's cash and shares bid worth around £190m has forced the North Sea focused oil group to withdraw its offer for the firm. CCTV security firm Vigilant Technology (LSE: VGT.L - news) is recommending an offer from Internet networking products group BATM worth around £845,000 in cash, or £1.04m in BATM shares. FTSE 100 - Risers
Marks & Spencer Group (MKS (MKX.TO - news) ) 221.25p +1.96%
GlaxoSmithKline (GSK) 1,203.50p +1.95%
Petrofac Ltd (PFC) 708.50p +1.21%
British Airways (LSE: BAY.L - news) (BAY) 207.75p +0.85%
John Wood Group (LSE: WG.L - news) (WG.) 452.50p +0.50%
International Power (IPWG.PK - news) (IPR) 435.75p +0.46%
Centrica (LSE: CNA.L - news) (CNA) 306.00p +0.41%
Morrison (Wm) Supermarkets (MRW) 256.75p +0.29%
Drax Group (LSE: DRX.L - news) (DRX) 764.00p +0.26%
Scottish & Southern Energy (SSE (Frankfurt: A0RFBG - news) ) 1,428.00p +0.21% FTSE 100 - Fallers
London Stock Exchange Group (LSE) 657.50p -8.93%
Wolseley (LSE: WOS.L - news) (WOS) 295.75p -4.90%
Royal Bank of Scotland Group (RBS (LSE: RBS.L - news) ) 191.40p -4.78%
Anglo American (AAL) 3,013.00p -4.59%
ITV (ITV (LSE: ITV.L - news) ) 39.70p -4.57%
Antofagasta (ANTO) 582.50p -4.43%
Standard Chartered (LSE: STAN.L - news) (STAN) 1,380.00p -3.90%
Lloyds TSB Group (LSE: LLOY.L - news) (LLOY) 284.00p -3.89%
Kingfisher (LSE: KGF.L - news) (KGF) 94.50p -3.87%
Enterprise Inns (LSE: ETI.L - news) (ETI) 349.50p -3.85%
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