RTRS: FTSE slides 1.8 pct as economic misery deepens
By Simon Falush
LONDON, Nov 13 (Reuters) - Britain's leading share index dipped 1.8 percent by midday on Thursday on mounting anxiety about the global economy, but the fall was tempered by stronger-than-expected results from BT Group (BT.L: Quote, Profile, Research, Stock Buzz).
By 1142 GMT, the FTSE 100 .FTSE was down 75.13 points to 4,106.89 after falling 1.5 percent on Wednesday.
The index touched its lowest in two weeks, and is down 6.3 percent this week and 36.4 percent this year.
European shares slid, following sharp falls in U.S. and Asian markets amid uncertainty about the U.S. Treasury's banking rescue plan and more signs of stress in the global economy.
"The change in emphasis of the Tarp plan is injecting uncertainty and it's leading shares back towards the lows we were at last month," said Rob Griffiths strategist at Cazenove.
Energy stocks took most points off the index as pessimism on the global economy sent oil CLc1 to a 22-month low of $55 a barrel.
BP (BP.L: Quote, Profile, Research, Stock Buzz) fell 5.3 percent, Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) shed 3.6 percent while Cairn Energy (CNE.L: Quote, Profile, Research, Stock Buzz) lost 4.9 percent. Embattled miners were also on the back foot again as metals prices slid to multi-year lows on worries about the demand outlook.
BHP Billiton fell 4.2 percent after it said it had scrapped a study into developing an integrated nickel project in eastern Indonesia. [ID:nSYU005525]
The UK mining index is down 15.2 percent this month and 57 percent this year.
BT, REED CONTAIN LOSSES
The slide in the FTSE 100 was contained by stronger-than-forecast results from BT Group and goods news from Reed Elsevier.
BT gained 8.7 percent after it reported second-quarter earnings just ahead of revised forecasts and said it was in the process of cutting 10,000 jobs.
Reed Elsevier (REL.L: Quote, Profile, Research, Stock Buzz) gained 6.5 percent after the professional information provider said it was on track to meet its full-year sales and earnings growth goals.
"The results this morning were reasonable, BT was not as bad as feared... but I think the rally (in these stocks) is untrustworthy and overall it still feels pretty murky," said Paul Kavanagh, director at Stockbroker Killik & Co.
Financial stocks were also among the heaviest losers as worries about the banking sector in the face of the credit crisis continued to weigh.
Japan's Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) said it plans to raise fresh capital while Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research, Stock Buzz) warned it expected a big jump in bad loans.
Shares in lender Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) fell 8.4 percent while rival HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz) and Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) lost 8 and 5.8 percent respectively amid continued worries all three face tough times ahead following Wednesday's gloomy quarterly inflation report from the Bank of England.
"We're following on from yesterday's inflation numbers. They are the three most UK-oriented banks in the market, that's what they've got in common," an analyst said.
Other financial stocks also suffered with London Stock Exchange (LSE.L: Quote, Profile, Research, Stock Buzz) sinking 12.3 percent after it posted a 57 percent rise in operating profit but warned markets would remain difficult.
ICAP (IAP.L: Quote, Profile, Research, Stock Buzz) was the biggest blue-chip loser, falling 25.7 percent to its lowest in over four years after Morgan Stanley cut its rating on the interdealer broker to "underweight" from "equal weight".
For an interactive timeline on Britain's recession, please click here
