FTSE ends below 6,000 mark

Commodity and banking stocks dragged Britain's FTSE 100 below the 6,000 level on Wednesday, with these sectors pressured by Greece's debt problems and uncertainty over global economic growth. London's blue chip index closed down 42.89 points, or 0.7 percent, at 5,976.00, having hit a one-week closing high on Tuesday.
Atif Latif, director of trading at Guardian Stockbrokers said: "Most of the weakness is based on selling on the back of more fiscal tightening expected in China post CPI numbers coupled with chatter around Greece, in particular that there is still no consistent message coming through from EU officials." Bank of England Deputy Governor Charles Bean warned of the potential for messy consequences from the eurozone debt crisis that is currently centred around Greece.
He also said commodity price volatility was very much on the radar of the G20, as the Bank of England raised its medium-term inflation forecast. Integrated oils and miners topped the list of blue chip fallers, sliding in tandem with commodity prices as risk appetite faded.
Banks were also down. Global heavyweight HSBC fell 1.5 percent after the publication of a strategic review which followed Monday's first-quarter results. Other stocks were down due to them going ex-dividend. These included BP, Inmarsat, Morrison Supermarkets, Randgold Resources, Rexam, Royal Dutch Shell, Sage, Unilever and Whitbread.
The US trade deficit widened more than expected in March, which could prompt analysts to trim their estimates of already weak first-quarter US economic growth. Wall Street was lower as the UK market closed after Walt Disney Co's quarterly results missed expectations..
Richard Batty, Global Investment Strategist, Standard Life Investments, warned expectations for profit growth for global corporates has peaked. "While the Q1 2011 profits cycle has been robust, with outcomes ahead of initial expectations, investors are rightly worried about the outlook in view of policy headwinds such as tighter fiscal and monetary policy, plus a harsher regulatory environment. Indeed, expectations for profit growth have been moderating recently."
Back among London's blue chips, ITV shed 5.3 percent after the free-to-air broadcaster said ad sales in May and June will be down on a year ago, prompting UBS to halve its full-year advertising growth forecast to 2 percent. On the upside, Burberry rose 2.7 percent, after fellow luxury goods companies Bulgari and Hermes posted strong first-quarter sales. Sentiment in the luxury sector was also boosted by a positive note on Europe's luxury companies from Credit Suisse.
Marks & Spencer added 0.8 percent after J.P. Morgan Cazenove's upgraded its recommendation and price target for the retailer. Elsewhere, Reed Elsevier climbed 1.8 percent after the Anglo-Dutch publisher's investor day on Tuesday, which Credit Suisse said "marked a significant turning point in the company's communication strategy." A trading update from Dutch peer Wolters Kluwer, also helped Reed. Defensive stocks were also chased higher by investors with power company International Power and drugmaker Shire up 1.8 and 2.3 percent respectively.