FTSE posts three-day losing streak

The FTSE 100 index fell 0.6 percent on Monday, recording a three-day losing streak after a month-long rally, as poor third-quarter US economic growth data on Friday bruised market confidence around the world.
But concerns about a deeper correction, akin to the two percent slide in Japan's Nikkei 225 earlier, were allayed as Wall Street stocks turned higher before the European close on the back of a 3 percent drop in oil prices. "Friday's US GDP figures were largely factored into closing prices on that day, but have since forced investors to think more about the prospects for earnings in a weak US market," said Peter Dickson, economist at Commerzbank.
"The FTSE 100 is vulnerable because it is internationally focused, and it wobbles if the US wobbles."
The FTSE 100 index closed down 0.6 percent, or 34 points, at 6,126.8. The index's retreat over the past three sessions follows gains of almost 5 percent between the start of October and last week's peak.
"The market has had a good run. There was room for profit taking," said Edward Menashy, economist and strategist at Charles Stanley, speaking of the day's market losses. "The fear again rises over whether the US could have a hard landing or even go into a recession."
Bearing the brunt of a bearish session, the oil sector lagged as US crude oil prices fell back below $60. Oil traders said they were awaiting signs that Opec members would adhere to their recent pledge to cut crude supply.
Among the leading FTSE 100 losers, BP shed over 1 percent. Royal Dutch Shell, which went ex-dividend, dropped 0.5 percent.
Pharmaceuticals also suffered, with Shire dropping almost 3 percent, leading the FTSE 100's biggest losers. GlaxoSmithKline also fell after it went ex-dividend while AstraZeneca bucked the trend and bounced back from Friday's losses by adding 0.5 percent.
"People are more negative on the sector because of AstraZeneca and Glaxo having weaker (third-quarter earnings) numbers on Friday and disappointment in the pipeline," a trader said. "But also you are not seeing upgrades coming through post Friday's results, which is what people may have been holding onto their shares for. So people are just dumping UK pharmaceuticals here."
Miners were weak after the fall in oil prices and after US copper futures hit a three-week low, with Kazakhmys, Vendanta and BHP Billiton all shedding about 2 percent. On the upside, utilities outperformed the index, as Kelda Group added 1.7 percent and Drax Group and Centrica gained around 1 percent.
"The utilities sector at the moment is being held up by M&A activity across the board," an analyst said. "The whole sector is being helped by that, and while names like Drax are not specifically targets for anyone, they are all being helped by this M&A side of things."
Hanson,, the world's largest supplier of sand and gravel for buildings, rose 2 percent despite a withdrawal of interest from Mexican firm Cemex. "Bid speculation is floating about Hanson again today," a trader said. "But this time, no specific names are in the frame." Also on the upside, shares in insurer Standard Life rose after a weekend newspaper report that French giant AXA could be considering a bid. AXA and Standard Life declined to comment.