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Market down almost 2% amid Eurozone inaction

The market lurched lower again on Monday morning amid further inaction in the Eurozone.

The Euro fell 1% overnight in Asian trading, and the UK banks led the way down as the FTSE 100 lost 100 points by 9am, a fall of 1.8%, to reach 5,271.

Lloyds Banking Group was one of the biggest fallers as it simultaneously said farewell to finance director Tim Tookey.

Tookey is joining Friends Life, part of Resolution.

The announcement from Lloyds did not add much to our understanding of why Tookey is going. He suggested Lloyds’ turnaround had reached a new phase:

This has been an important period for the Group and I am pleased to have played a part in defining the next stage of the strategy which I fully endorse as the right one to realise the Group’s potential. With its implementation now underway, this felt like the right time to consider a different challenge.

Lloyds was down 5.7%, to 33.8p.

The big drags on the index were the banks, taking 18 points, the miners, who lost 22 points, and the oil majors, losing 14 points.

The most eye-catching fall of the day was Ocado, under pressure again after saying its margins were likely to be thinner than expected.

The online retailer said it was investing “in our customer service”. It added that “this investment is likely to lead to a slightly lower than expected increase in full year margins.”

Investors were unimpressed – the shares were down 13% this morning to 117p.

PZ Cussons, the maker of Imperial Leather soap and the Carex brand, said trading was in line with expectations.

In the UK, trading in the core washing and bathing division has been robust although margins continue to be impacted by high promotional and raw material costs.

The shares fell 1.2% to 332p.

Among the small caps, Gulf Keystone Petroleum‘s legion of small investors will be poreing over its confirmation this morning that it is considering a fundraising:

Gulf Keystone notes recent press speculation and confirms that the Company is considering its options with regards to an equity fund-raising.

Press reports had suggested the oil explorer needs 0m to pursue further drilling, among other things.

The shares fell 2.2% to 166p. © 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds