LONDON: A fresh dose of weakness in the financial sectors, plus an element of caution ahead of tomorrow's pre-budget statement from the Chancellor of the Exchequer, were mostly responsible for driving the London equity market lower again yesterday.
FTSE 250: 4,497.00 (+28.60); FTSE SmallCap: 1,898.8 (+2.7)
But dealers said the downside pressures were never unduly intense at the start of what could be a lively week in the stock market.
The loss of the recent upside momentum, particularly in the leaders, was viewed as disappointing, with the FTSE 100 once again encountering determined resistance around the 4,200 level. Having initially moved up to 4,197.7, the 100 index drifted back for the rest of the session. The slide gathered pace in the afternoon as an early rise on Wall Street ran into pockets of profit-taking.
The FTSE 100 finished a net 53.0 off at 4,122.2, after a low of 4,108.0, while the mid-caps suffered as well, with the 250 index dipping another 28.6 to 4,497.0. The FTSE SmallCap index was the only one of the main indices to remain in positive territory, ending 2.7 firmer at 1,898.8 - its fourth consecutive gain.
As well as the pre-budget statement, there is a list of economic news and data, on both sides of the Atlantic, to keep the market busy and perhaps provide ammunition for a drive through the 4,200 level. The last time the index closed above 4,200 was on September 11th.
On the domestic front, members of the Bank of England's monetary policy committee, headed by bank governor Sir Edward George, testify to the Treasury select committee today while there is also the first revision of third-quarter gross domestic product.
Meanwhile, the US economic data and news schedule is even busier.
Details will be released on preliminary GDP data, consumer confidence, Michigan Sentiment and the Chicago PMI, as well as the US "Beige Book", which will set the agenda for the December 10th's meeting of the Federal Reserve's rate-setting open market committee.
London will, however, be affected by the Thanksgiving Day holiday in the US on Thursday and a shortened trading session on Friday. Turnover in equities was 2.3 billion shares, boosted by programme trade activity.
