FTSE 100 falls on retail stocks

Mining and energy stocks rallied on the FTSE 100 this afternoon, but the index still closed lower again, down 47.80 points to 5,318.40.

As consumer sector stocks fell on gloomy results from several retailers, commodities surged.

Shares in Anglo American were up by 5.15 per cent to 2,308p and up BG Group was up 4.27 per cent to 1,100p.

Meanwhile, Morrison Supermarket led the fall with a drop in its share value of 6.11 per cent. Despite reasonable results showing customers are listening to its value message, a downbeat note from an analyst was enough to scare investors.

Sainsbury stock was also down, by 5.93 per cent and DIY group Kingfisher fell 5.38 per cent.

Ryan Kneale, market analyst at City bookmaker www.BetsForTraders.com said: "The markets are about as miserable as the weather today with hardly an iota of good news out there. Retail stocks are taking a pummelling as the consumer slowdown gathers steam and things look much more likely to get worse before they get any better.

Mr Kneale added: "BetsForTraders.com clients are out in force today, with the smart money continuing to back the US Dollar gaining against the other major currencies. At present, 74 per cent of all bets on the greenback are indicating it continues its broad rally, which equates to some of the strongest US dollar sentiment we have ever seen."