FTSE:5,925.87 (–19.09) Mid-250:11,999.22 (+32.11) Small Cap:3,281.72 (+8.72)

THE LONDON market fell into the red yesterday as sliding commodity prices overshadowed forecast-busting growth in the euro zone.

The FTSE 100 index closed 19.1 points lower at 5925.87, having spent much of the session in the black, as mining stocks began to follow commodity prices downwards.

The mood in London was helped by first-quarter figures showing the economies of the 17 countries of the euro zone grew by 0.8 per cent, bettering the market’s expectations of a rise of 0.6 per cent.

The powerhouse German economy grew by 1.5 per cent, while France’s output expanded by 1 per cent – boosting hopes of stronger demand for UK exports.

Mining and energy stocks, which had been responsible for much of the top flight’s gains in the morning, saw their prices begin to fall back in the afternoon.

Anglo-Swiss miner Xstrata lost 20.5p to 1358p, oil and gas firm BG Group was down 18.5p at 1322p, and copper giant Kazakhmys fell 16p to 1213p.

British Gas owner Centrica was among the fallers despite Deutsche Bank introducing a buy rating and noting the stock had underperformed rival utilities by 14 per cent in the last 12 months due to fears about margins.

Centrica’s shares, which have recovered in recent days following speculation over a Qatari takeover bid, lost earlier gains and were down 0.9p at 317.3p.

Poor sales figures from department store bellwether John Lewis sparked a slide in retail stocks.

John Lewis said sales excluding VAT were down 3 per cent in the first week of May, creating concerns that April’s rise in high street sales would not be sustained. Next was near the top of the fallers’ board, down nearly 2 per cent, or 41p to 2281p, while Marks Spencer was 3.8p lower at 398.4p.

The London Stock Exchange was one of the biggest risers in the FTSE 250 index after it increased profits by almost two-thirds last year. Shares were up 1 per cent, or 9.8p, to 828.8p.

The biggest FTSE risers were Whitbread up 35p at 1668p, Sainsbury’s ahead 7.5p at 362.8p, Petrofac up 30p at 1479p, and Aggreko ahead 33p at 1811p.

The biggest FTSE fallers were ITV down 2.1p at 69.4p, Scottish and Southern Energy off 33p at 1335p, Prudential down 13.5p at 735p and Next. – (PA)