LSE: FTSE 100 index lower on Ukraine worries, economic data in focus

Britains FTSE 100 index opened lower on Thursday and slid for the first time in three days, tracking a fall in New York overnight on renewed concern that the crisis in Ukraine may escalate. Investors awaited the release of the final US fourth-quarter GDP growth, as well as weekly initial jobless claims numbers and retail sales in the United Kingdom.

Britains blue-chip index stood at 6 580.30 points at 9:27 GMT, down 0.38% on the day, having shifted in a daily range between 6 585.00 and 6 562.30 points. The headline index rose by 0.41 points on Wednesday, or 0.01%, to close at 6 605.30 points.

Global equities were pressured to the downside after the United States and the European Union agreed on Wednesday to work on preparing possible tougher economic sanctions against Russia, including its energy sector, and also reduce Europe’s dependence on Russian energy exports.

President Obama warned yesterday after a meeting with European leaders that Moscow’s isolation will deepen, if it continues its current course. He warned that indifference would ignore the lessons learnt from two world wars.

In economic news from the US, the Commerce Department reported a surprisingly large jump in orders for durable goods in the US. Bookings for items meant to last more than three years rose by 2.2% in February, reflecting solid growth in demand for autos. Analysts had expected a moderate rebound to 1% growth from the preceding period’s downward revised 1.3% contraction. This comes after data by the Conference Board showed on Tuesday that US consumer confidence jumped to a six-year high in March.

Market players are now awaiting the release of the final fourth-quarter US GDP numbers, as well as the weekly initial jobless claims figures. The US economy is expected to have grown by 2.7% in the fourth quarter from a year earlier, up from the previous revised reading of 2.4%.

Gainers, losers

The FTSE 100s top three gainers for the day so far are BG Group Plc, British Sky Broadcasting Group Plc and RSA Insurance Group Plc.

BG Group rose by 0.48%, or 5.25 pence, to 1 108.75 pence by 9:22 GMT, while British Sky Broadcasting Group added 0.52%, or 4.75 pence to trade at 920.75 pence. RSA Insurance Group was up 0.46%, or 0.40 pence, at 88.20 pence.

Meanwhile, FTSE 100s top three losers for the day were Babcock International Group Plc, Tullow Oil Plc and Fresnillo Plc.

Babcock International Group fell by 3.81%, or 52.00 pence, to 1 314.00 pence by 9:24 GMT. The engineering-services company, seeking to expand its helicopter servicing, agreed to acquire equity-owned Avincis for 920 million pounds. Babcock will absorb 705 million pounds of Avinciss debt and will carry out a rights offering to fund the purchase.

Fresnillo Plc was down 2.52%, or 22.00 pence, to trade at 850.50 pence, while Tullow Oil Plc lost 3.57%, or 27.75 pence, to 749.25 pence.

Royal Bank of Scotland Group Plc fell by 1.19%, or 3.65 pence, by 9:25 GMT and traded at 302.45 pence. The US Federal Reserve blocked plans of the US units of RBS and HSBC for higher dividends and share buybacks, citing flaws in the quality of their capital planning. HSBC was down 0.52% at 608.05 pence.