FTSE down; euro zone debt concern lingers

* FTSE down 0.1 pct; policymakers seeks to sooth debt fears

* Miners rally following recent weakness, metals strong

* Tesco falls on CEO’s surprise retirement

By David Brett

LONDON, June 8 (BestGrowthStock) – Britain’s leading shares fell on
Tuesday, as BP (BP.L: ) led energy shares lower to outweigh gains
in miners, while banks were mixed as policymakers attempted to
sooth fears over Europe’s debt crisis.

By 0802 GMT, the FTSE 100 (.FTSE: ) was down 3.13 points, or
0.1 percent at 5,065.93, having shed 1.1 percent on Monday.

Euro zone ministers agreed on how to deploy a massive plan
to help debt-stricken members, and comments from U.S. Federal
Reserve Chairman Ben Bernanke attempted to soothe investors’
concerns over growth.

Banks (.SX7P: ), which have been hit hard since fears over
euro zone debt erupted in mid-April, were mixed as investors
remained uncertain over the long-term outlook.

UK-focused banks Lloyds Banking Group (LLOY.L: ), Barclays
(BARC.L: ) and Royal Bank of Scotland (RBS.L: ) fell 0.1 to 1.2
percent, while HSBC (HSBA.L: ) and Standard Chartered (STAN.L: )
added 0.2 and 0.6 percent respectively.

Euro zone ministers inked a deal on the Special Purpose
Vehicle (SPV) to raise up to 440 billion euros to lend to the
region’s countries that become entangled in debt payments
problems. [ID:nLDE65701M]

Bernanke also sought to allay fears over Europe’s debt
problems, saying European leaders are committed to ensuring the
survival of the euro and have enough money to meet obligations
of heavily indebted member countries.

He also said the U.S. economy appeared to have enough
momentum to avoid a “double-dip” recession, citing strengthening
consumer and business spending. [ID:nLDE657021]

“The fact remains our big problem is contagion from European
debt and debt all over the world, and that continues to outweigh
sentiment towards healthy corporate earnings,” David Buik,
partner at BGC Partners said.

Energy shares fell as investors remained downbeat on BP
(BP.L: ) as the oil major continues its efforts to stem the major
oil spill in the Gulf of Mexico.

BP was down 2.1 percent, while peers Royal Dutch Shell
(RDSa.L: ) and BG Group (BG.L: ) lost 0.1 and 0.1 percent
respectively.

Tesco (TSCO.L: ) fell 1.5 percent as investors reacted
negatively to Terry Leahy, the longstanding boss of Tesco,
announcing his surprise resignation from the world’s No.3
retailer. Tesco said he will be succeeded by lifelong company
man and head of international business Philip Clarke.

MINERS CLAW GAINS

Miners led on the upside on London’s blue-chip index.

The sector, which has been battered by global growth fears,
rallied but is 23 percent off highs reached in early April, just
before euro zone debt worries and monetary tightening concerns
in China gripped investors.

Fresnillo (FRES.L: ), Xstrata (XTA.L: ) and Eurasian Natural
Resources (ENRC.L: ) rose 1.3 to 2.3 percent.

Power generator rental group Aggreko (AGGK.L: ) rose 4.7
percent after it said full-year performance should be
significantly better than expected as it benefited from contract
wins including for the soccer World Cup.

The news helped buoy the service sector, with Capita
(CPI.L: ), Serco (SRP.L: ) and Experian (EXP.L: ) rising 0.3-0.6
percent.

G4S (GFS.L: ) climbed 2.1 percent, extending the previous
session’s gains as the Daily Mail’s Market Report cited revived
rumours that a private equity consortium led by Kohlberg Kravis
Roberts is lining up a 5.3 billion cash offer worth 375 pence a
share for the security provider.

Growth Stocks

(Editing by Erica Billingham)

FTSE down; euro zone debt concern lingers