THE FTSE 100 Index took its lead from Wall Street today after weak US home sale figures added to nerves about the scale of the economic recovery.
The Dow Jones Industrial Average closed more than 1% lower and triggered losses in Asia after the unexpected fall in existing home sales data.
The loss of recent gains for world markets was seen in London, where the FTSE 100 Index added to yesterday’s 50 points fall with a drop of 40 points to 5207.
This was despite relief that George Osborne’s emergency Budget had been less severe on the business community than first thought.
While VAT increased to 20%, the move was delayed until January and contained no additional taxation on certain product areas.
A number of retailers were on the front foot, including B&Q owner Kingfisher and Currys firm DSG International.
The sector also benefited from results by Comet chain Kesa Electricals, which returned to profit with a performance ahead of City expectations. With Bank of America raising its price target on the stock, Kesa lifted 4.8p to 122.2p.
Stagecoach shares were also higher after revealing an improved trend and outlook for its UK rail division. The stock rose 2.9p to 302.9p, despite a fall in profits for the year to April 30.