Markets opened more or less flat on Tuesday with sentiment still fragile following the Cypriot bailout and investors showing caution ahead of some key economic data from the US.
Durable-goods orders, the S&P/Case-Shiller Home Price Index, new home sales and consumer confidence figures are all due out this afternoon in the States.
Over in Cyprus, the government has decided to keep all of the country's banks closed until Thursday, giving officials two more days to work out measures to avoid a run on deposits. Financial institutions have been closed since March 16th as authorities wrangled over a €10bn bailout agreement with the Troika. This weekend's deal involved forcing big losses on uninsured depositors but saved small depositors.
Stocks started Monday's session with decent gains but the rally proved short-lived after an interview with Eurogroup President Jeroen Dijsselbloem was interpreted to mean that the hit on depositors would serve as a template for future bailouts. Dijsselbloem later back-stepped and published a new statement claiming that "Cyprus is a specific case with exceptional challenges which required the bail-in measures".
Asian markets were broadly lower overnight on concerns over the Eurozone crisis as well as speculation that officials in China may take further measures to rein in home prices. China's Vice Minister of Land and Resources, Hu Cunzhi, suggested at the weekend that the government should raise taxes for those with more than two properties.
"With the introduction of property curbs, this could impact the Chinese economy which caused investors to sell the bigger stocks like financials," said Lee Mumford, a financial sales trader at Spreadex.
ENRC slumps after Kazakhmys results; Kingfisher gains despite profits fall
Mining giant ENRC dropped as part-owner Kazakhmys announced a $2.2bn impairment charge after writing down its holding in ENRC in its 2012 results. Shares in Kazakhmys tanked after the FTSE 250 miner fell into the red last year.
Heading the other way was B&Q owner Kingfisher despite reporting a 11.4% fall in full-year profits as the bottom line met market expectations.
Contract caterer Compass was lower after saying that a weak performance in Europe & Japan held back growth in the first half. The company said that its forecasts for the full year remain unchanged though.
Asset management groups Aberdeen was a high riser after its first-half trading update yesterday. Bank of America, JPMorgan, Credit Suisse and Exane BNP Paribas all chose to increase their target prices for the stock this morning, while Numis upgraded the shares
Sector peer Schroders, which yesterday announced a recommended offer for Cazenove Capital, was also extending gains.
Financial group Legal & General also rose after agreeing to buy a 75% interest in UK fund platform Cofunds for £131m.
Plumbing merchant Wolseley was unwanted after saying that half-year profit slipped owing to weakening demand in Europe and Canada.
FTSE 100 - Risers
Morrison (Wm) Supermarkets (MRW) 277.30p +3.97%
Aberdeen Asset Management (ADN) 426.30p +3.52%
Schroders (SDR) 2,163.00p +3.49%
Resolution Ltd. (RSL) 274.60p +2.35%
Kingfisher (KGF) 288.60p +1.87%
Petrofac Ltd. (PFC) 1,437.00p +1.77%
Melrose Industries (MRO) 261.00p +1.56%
Wood Group (John) (WG.) 849.00p +1.43%
Legal & General Group (LGEN) 170.00p +1.37%
Johnson Matthey (JMAT) 2,230.00p +1.32%
FTSE 100 - Fallers
Eurasian Natural Resources Corp. (ENRC) 254.50p -5.07%
Wolseley (WOS) 3,135.00p -2.37%
Aggreko (AGK) 1,823.00p -1.73%
Lloyds Banking Group (LLOY) 47.03p -1.63%
Compass Group (CPG) 821.50p -1.62%
Royal Bank of Scotland Group (RBS) 282.90p -1.50%
Barclays (BARC) 278.80p -1.17%
International Consolidated Airlines Group SA (CDI) (IAG) 254.70p -0.97%
Rolls-Royce Holdings (RR.) 1,101.00p -0.72%
BT Group (BT.A) 279.00p -0.64%
FTSE 250 - Risers
Bovis Homes Group (BVS) 748.00p +2.75%
Ted Baker (TED) 1,331.00p +2.38%
WH Smith (SMWH) 744.50p +2.34%
BH Global Ltd. USD Shares (BHGU) 12.05 +2.12%
Bellway (BWY) 1,217.00p +2.10%
Redrow (RDW) 190.10p +1.77%
Law Debenture Corp. (LWDB) 473.50p +1.39%
CSR (CSR) 495.50p +1.39%
Henderson Group (HGG) 161.20p +1.32%
Workspace Group (WKP) 344.00p +1.21%
FTSE 250 - Fallers
Kazakhmys (KAZ) 397.00p -10.51%
Savills (SVS) 541.50p -5.99%
African Barrick Gold (ABG) 203.00p -2.73%
COLT Group SA (COLT) 129.10p -2.20%
Barr (A.G.) (BAG) 560.00p -1.75%
St. Modwen Properties (SMP) 255.50p -1.66%
Ferrexpo (FXPO) 167.20p -1.65%
SIG (SHI) 157.80p -1.38%
Ophir Energy (OPHR) 466.30p -1.21%
National Express Group (NEX) 209.40p -1.04%