Shares remained lower in mid afternoon trading.
The FTSE100 was down 72.8 points at 5,605.9 with the FTSE250 down 157.3 points at 9,077 and the FTSE Smallcaps 18.2 points lower at 3,348.2.
Volume was strong with 2.2 billion shares changing hands in 305,931 deals.
Wall Street opened lower after a weaker-than-expected goods report lifted hopes of an early end to interest-rate increases, but also stoked concern about slowing economic growth. In early deals, the DJIA was 28 points lower at 1,1069 and the S&P500 was down 3.50 to 1,253.40.
Mining stocks once again took over the news after reversing initial gains, as commodity prices extended recent losses with silver down over 5%.
Oil stocks have also been hit as yesterday's rebound in commodities ran out of steam today and as expectations for further gains in US gasoline stocks eased traders supply fears. This afternoon July Brent Crude contracts were down 72 cents at $70.28, after closing up $1.65 at $71.00 yesterday.
Today’s look at individual Stocks:
The mining stocks are as follows; Kazakhmys down 47.5p at 1,035p, BHP Billiton down 42.5p at 999.5p, Xstrata down 51p to 1,891p, Antofagasta down 81p at 1,991p and Anglo American down 65p to 2,105p.
Oil stocks; BP down 14p at 621, Cairn Energy down 95p to 2,092p, Shell down 30p to 1,807p and BG Group down 3p at 670p.
Smiths Group was, yes you have guessed it down 34p at 884p, Wolseley down 33p at 1,200p, BAE down 10p at 362p and Amvescap down 20p at 498p.
PartyGaming is another casualty of the sliding FTSE today, down 6p at 125p, continuing yesterday's poor run after jitters occurred ahead of a further hearing tomorrow to debate proposals from Republican Congressman Bob Goodlatte to outlaw internet gambling in the US. I think the congressmen should stop wasting time debating internet gambling laws and debate more pressing issues.
Kingfisher was also down 5p at 225p after the home improvement retailer announced a 45% slump in first-quarter profits to £68.4 million, albeit in line with forecasts of between £60 - £70 million. The group now expects consensus forecasts for the year to January 2007 to 'tighten' to about £410 million to about £400 million. In response to this, Panmure Gordon reiterated a 'sell' recommendation, saying the results were 'dreadful'.
Shares in GUS however, reversed early gains to trade 7p lower at 938p as weak market sentiment offset solid results from the owner of Argos. The group revealed plans to complete the de-merger of its ARG retail business and its Experian financial services operations in October. In the year to March, pre-tax profits before exceptionals came in at £829 million, down from £910 million in the previous year, but still at the top of market expectations of £815 - £829 million. In response, UBS reiterated its 'buy' advice and said pre-tax profit was slightly ahead of expectations, helped by a stronger showing from discontinued activities and a Homebase accounting change.
One to shine today was Reckitt Benckiser trading 17p higher at 1,982p after bullish comments from UBS, with the broker reiterating its 'buy' advice.
Scottish Power was also up 9p at 553p, following an upgrade to 'add' from 'hold' by DKW after strong full-year results and as a result of its defensive qualities.
And finally 888 Holdings gained 4p to 198p after HSBC upgraded its recommendation on the Internet gaming group to 'overweight' from 'neutral'. HSBC argued that 888 shares, trading at 2006 and 2007 earnings ratios of 13.3 and 9.7 times respectively, offer good value and recent weakness should be treated as a buying opportunity.
The Portfolio:
Wolfson (WLF) - This stock is currently trading down 4.97% at 415.50.
