British Airways is leading the fallers as the FTSE 100 slips back after Wall Street's overnight decline.
BA is currently facing concerns about a number of issues, not least falling passenger traffic, and the continuing delay over its proposed merger with Spain's Iberia. Today its shares are down 9.3p at 220.6p as Citigroup cut its recommendation from buy to hold. The bank said the airlines shares were vulnerable to any disappointment, although if the Iberia merger and a planned joint venture with American Airlines both go ahead the shares could pick up again. A downbeat note on European airlines from UBS has not helped matters.
Overall the FTSE 100 is down 43.42 points at 5095.95, after dipping lower yesterday. Part of today's decline is due to disappointment that the US Federal Reserve was not more forthcoming on the prospects for the global economy and concerns about when it might unwind its stimulus plan. Cautious comments from Bank of England governor Mervyn King have not helped matters. John Murphy at ODL Securities said:
"Following a negative session, one needs to consider if the rally has run out of steam. Whilst it can't be argued that the rally over the past few months has been impressive. Looking ahead, is there enough justification for further moves to the upside? Human nature suggests nerves will enter the market at these heady levels, so we need to see buyers come back in if the rally is to continue."
Among the other fallers, the London Stock Exchange has lost 37p to 842.5p after warning market conditions remained tough and cutting 12% of its staff.
Royal Bank of Scotland remains under pressure, down another 1.2p to 51.25p awaiting news on any fundraising and its participation in the government's asset protection scheme. Other banks are also weaker ahead of the G20 meeting where financial reform is on the agenda.
Among the mid-caps, Yell's proposed £500m fundraising really is not being received well. Its shares are off another 5.8p to 58.55p.
Retailer JJB Sports - which scarcely seems able to keep out of the news recently - has slumped 3.5p to 36p after a £42.3m half year loss, compared to a £14.8m decline this time last year. KBC Peel Hunt said:
"We struggle to recall a worse set of interim results. However, in current trade gross margins have recovered, additional working capital facilities have beensecured and management is successfully rebasing central costs, giving hope for 2011. An equity fundraising remains likely."
