A combination of blood running down Threadneedle Street and Canary Wharf from the bond market debacle of the last few days plus uncertainty over Greece put equities to the sword this morning.  Within an hour the FTSE 100 was down 108 points at 6840.  Miners, drugs, tobacco, banks and oils were all down by between 1.5% and 2%. However after the rally only oils lagged ahead of tomorrow’s OPEC meeting, when observers feels that OPEC will keep production at the same level. Drugs were only down 0.5% to 1%. SAB Miller was just easier by 0.3% and Diageo was unchanged. Miners were still in the doldrums though Rio eased by only 0.5%. Tobaccos all but erased its losses.


Then the IMF proffered advice to the FED to delay hiking rates until Q1 of 2016.  Added to some more encouraging fairy tales emanating from the Greek crisis, which before ventured to suggest that hope was starting to spring eternal all of a sudden the FTSE 100 girded up its loins pairing significant losses.  At the time of writing – 3.45pm the FTSE was only down 40 at 6890, having been given some impetus positive reaction from the Street of Dreams, which at 3.45pm was only down 60 points having been down 120 early on.


In regards to individual stocks in play today, Moneysupermarket and Zoopla were down 9% and 5% courtesy of intervention of an Ofgem enquiry.  easyJet added 1.25% thanks to better traffic figures for May after the damaging French strike issues in April. Pets-At-Home and Johnson Matthey both posted stellar results but they had both travelled and arrived – so investors took profits – down 2.5% and 4% respectively. Just Retirement and Partnership recovered some poise – up 0.5% thanks to annuity rates likely to go up courtesy of higher bond yields.


The BOE’S MPC left rates unchanged – 0.5% has been the level since March 2009. Much of this afternoon’s entertainment has centred around Chancellor Osborne’s speech in the Commons about £4.5 billion cuts in public expenditure. HMT has agreed to let the last 30% of Royal Mail Group go for £1.5 billion. It appears that NM Rothschild will advise on this rather than Lazard Bros, who were involved controversially in the first tranche.  Today shares remained down 3.5% on the day. The Government is likely to raise £345m from the sale of property in Kings Cross and maybe some MOD property. The sale of Lloyds and RBS shares may be announced in 8th July emergency budget.


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