Disappointing US consumer confidence figures have given investors the excuse to bank some profits, pushing markets lower on both sides of the Atlantic.
According to the US Conference Board, an industry group, the consumer confidence index fell to 46 in February - a 10 month low - from 56.5 in the previous month. Traders had been looking for a fall in the index as job worries increased, but only as far as 55. So Wall Street has dropped nearly 70 points in early trading, while the FTSE 100 is now 39.02 points lower at 5313.05. James Knightley of ING Bank said:
Today's figure bodes badly for consumer spending, which had been improving of late. It also suggests that the better housing numbers are looking less sustainable and adds to downside risks for growth forecasts. Nonetheless, the size of the drop relative to the recent improvement in data flow across the economy does raise question marks. A rise in tonight's ABC weekly series may point to today's move being a temporary blip.
Miners were among the biggest fallers in the UK index on demand concerns, with Fresnillo falling 26.5p to 751p and Eurasian Natural Resources Corporation off 33p at £10.32.
