LONDON (Reuters) ? Weakness in banks and commodity stocks dragged Britain's leading share index lower on Monday as the protracted search for a Greek bond deal and concerns about economic growth kept investors nervous.
The FTSE 100 (.FTSE) index closed down 62.36 points, or 1.1 percent, at 5,671.09, extending Friday's falls and retreating further from Thursday's six-month closing high.
The FTSE volatility index (.VFTSE) was also active, up over 10 percent, its biggest daily percentage rise in a month and signaling an increase in risk aversion.
Banks (.FTNMX8350) were the biggest blue-chip casualties, hit by concerns that extra liquidity injections from central banks had not addressed the sector's fundamental problems.
Credit Suisse reduced its recommendation on the European Banking sector to "underweight" as it said the direct earnings impact of the European Central Bank's (ECB) late-December splurge of cheap, long-term cash for the banks appeared to be over-estimated.
Barclays (BARC.L) was the UK sector's biggest faller, down 4.2 percent, while Lloyds Banking Group (LLOY.L) shed 4.1 percent, and Royal Bank of Scotland (RBS.L) fell 3.5 percent.
EU leaders met in Brussels on Monday, the first summit of 2012, to sign off a permanent rescue fund for the euro zone -- Britain's biggest trading partner -- though the meeting was overshadowed by the unresolved Greek debt problems.
To avoid a chaotic default, which could have grave ramifications for sentiment and financial systems across the globe, Greece must secure a deal with its private bond holders and persuade international lenders it is serious about reforms in order to secure much-needed cash.
Fresh tensions between Greece and the euro zone's biggest economy Germany over the weekend regarding the debt bail-out terms also knocked sentiment.
"This isn't the first time Greece has shown resistance to accepting certain EU bailout terms and conditions, and given their weak position they may need to concede again, otherwise risk defaulting on the debt repayments due in March," said Jordan Lambert, Trader at Spreadex.
U.S. blue chips (.DJI) were down 0.6 percent by London's close, also suffering on concerns over the Greek debt situation, and after further dull U.S. economic data.
U.S. consumer spending was flat in December as households took advantage of the largest rise in income in nine months to boost their savings, setting the tone for a slowdown in demand early in 2012.
COMMODITIES DIP
Weakness in commodity issues also weighed on blue chips in London, with a retreat in crude knocking the integrated oils (.FTNMX0530) as an expected Iranian vote to suspend crude exports to Europe was postponed, easing supply concerns.
Miners (.FTNMX1770) also moved lower in tandem with weaker metal prices, as softer-than-expected U.S. economic data fuelled concerns about demand levels.
Defensive stocks dominated on the short list of blue chip gainers, led by drugmakers, with AstraZeneca (AZN.L) and GlaxoSmithKline (GSK.L) up 0.6 percent and 0.5 percent.
AstraZeneca will post fourth-quarter results on Thursday.
Utilities were in demand, with energy generator International Power (IPR.L) up 0.6 percent, and power distributor National Grid (NG.L) ahead 0.5 percent. Both firms are due to issue trading updates later this week.
And chip designer ARM Holdings (ARM.L) gained 0.3 percent, with its fourth-quarter results due tomorrow.
(Reporting by Jon Hopkins; Editing by Will Waterman)
Source: http://us.rd.yahoo.com/dailynews/rss/britain/*http%3A//news.yahoo.com/s/nm/20120130/bs_nm/us_markets_britain_stocks
aj burnett aj burnett jason wu jason wu the fall the fall kellen winslow
@pepperink4242
Thats crazy good.
Nice job I cant draw for? my life but I can use photoshop
IT`S PRO !!!?
Holy freaking wow. This? is amazing. I love it!
2012 $10 ITunes? gift
1. Download the App ?App Trailers? or ?AppRedeem? for Android phones
2. Enter? promo code ?itunes10dollar?
3. Use points to redeem for $10? gift card
I promise you that this app? is worth your time! -James
Also, instead of itunes gift card you?ll have? the option to? chose paypal? transfer instead!
@samboleh go die already asshole! No one likes you anyway!? The fact you have so much hate is because you?re the one who started it dumbass!
@samboleh
You first, you dumb piece of crap! Burn? in hell!!!
That guys a tank?
@BryanDing3000? go burn in hell.
???????????
i bet he was? hearing this music while drawing!
Whoa. Absolutely Flawless.?
amazingly? sick
and that took how many days? o.o
I was there! This? was so cool
That?s chalk?
It?s? time to d-d-d-d-d-d-d-d-d-d-d-draw!
I?m gonna go out and buy some? chalk.
What was the very first song used? The slow? one at the begining?
OMFG! Incredible fantabulous. It?s sooo? freking awesome
Incredible?
3? people are just plain stupid.
@MrManBearPig1000 Sorry ?saw this?.?
I was this while I was at the con. Dude, you need a friggin? award or something.?
That? is bloody amazing
This?..this guy?s drawing skills are? INCREDIBLE! He had the patience to do all of that?! Very very cool.
@3rit3rat006? rofl
Nice butt!? DAMN!
You can hear and feel? the slap! STEPHANIE IS THE BEST!!
When she slapped him, I was laughing so hard that I started crying. Good thing I can rewind! I need? that laugh.
hahahahahahahahaha?
fucken best theme everr!?
and now his coo of this business..?
@nataloe510 Heck yeah she is! McMahon-Helmsley Part 2 is coming i?m telling you? all thanks to this? past Sunday at Summerslam and Monday Night Raw? I think it is going to happen!!!
I wonder? what Steph?s mom was thinking?!?!? Lol?. Oh god? That is going to be my Son-In-Law? Haha?
HAHAHAHAHA So much sexual? tension, Did you see that look in the end? So HOT! XDD
I think as a very classic moment! One? that I think should never be forgotten!
They did a really good thing here with HHH. Brought out all his personas? to celebrate Raw?s 10th anniversary. We see the Evolution HHH all over, but the mooning makes us remember the DX HHH.
rofl?
@MegaClarkey12 i saw that somewhere on? twitter!!
@twilight4evaa1 Your welcome,? anytime
@abe1289? thanks
@twilight4evaa1 It? was Raw Tenth anniversary in January 2003
WHAT? YEAR WAS THIS?
@msalex2cool yeah right u stupid idiot huh and steph have 3 girls and NONE of them r old enough to make a tube channel? they are 4 and 2 and 10months so get a life u asshole
@nataloe510 I think she might come back later in the year she had to take care of their children. I? heard that she gets hurt and Triple H is trying to find out who. Almost like what happened to Undertaker and Kane last year. I?m not sure if this is true but it would be awesome if it is.
its funny? bcuz no matter what they laugh at themselves cuz they know its not real
WTF!!!!!? 0:34
McMahon-Hemsley Era. AWESOME? ! ?
because it was the? theme when they were together.
nice ass? hhh