FTSE shares falter on weak US goods data

LONDON (AFP) – Leading shares in London faltered on Wednesday after weak US data raised fresh doubts over the strength of the economic recovery, dealers said.

The benchmark FTSE 100 index closed down 0.86 percent at 5,319.68 points.

News US durable goods orders fell again in June added to growing concern that the US economy was slowing, they said, with investors keenly awaiting US second quarter growth figures due on Friday.

The goods indicator, “although very volatile, remains important in determining market direction,” said Christian Parisot, an economist at Aurel in Paris.

Lloyds Banking Group (LBG) was the most traded stock, seeing 383 million shares switch owners, followed by Royal Bank of Scotland (RBS), which saw 161 million units change hands.

Broadcaster BSkyB was also the top blue-chip performer, adding 1.34 percent — or 9.5 pence — to end at 720, followed by miner Xstrata, which rose 1.26 percent — or 13 pence — to end at 1,044.

Electricity company Scottish and Southern Energy was the biggest faller, shedding 5.35 percent — or 63 pence — of its value to end at 1,115, followed by engineering company Invensys, which closed down 4.74 percent — or 13.9 pence — at 279.1.

Meanwhile, the pound gained both against the dollar and the euro.

At 17:20 BST, the pound was trading at 1.562 dollars, up from 1.557 dollars at the same time Tuesday, while sterling stood at 1.201 euros, up from 1.197 over the same period.