A dip on Wall Street after unexpectedly poor US housing figures has taken the shine off London's leading shares.
US housing starts fell to record lows in April, a setback for those looking for the green shoots of recovery. Arek Ohanissian, economist at the Centre for Economic and Business Research, said:
"Today's news on housing starts indicates that the belief that the housing market has stabilised is premature. Unless the figure for April is significantly revised upwards, it suggests that the housing market is still on its way down which is bad news for the economy as a whole. Other economic indicators, including consumer sentiment, have already begun to turn. However, an economic recovery in the United States will require a recovery in the housing market as well. Indeed, a key element to the Fed's forecast of an end to the recession later this year is its assessment that the housing market has stabilised. Today's data puts that assessment (and corresponding forecast) in doubt."
So with the Dow Jones Industrial Average off around 20 points the FTSE 100 has seen its gains cut back. It now stands at 4460.10, up 13.65, having earlier moved as high as 4512.70, which would have been its best closing level since 6 January.
