UK loses AAA credit rating

Although the UK lost its highly coveted AAA rating over the weekend, the UK equity shrugged off the news this morning very quickly.

At 12.30 the stock market was up 36 points at 6371 with miners and banks leading the way. Antofagasta was up 3.5 per cent and Kazakhmys and Anglo American were not far behind. In the banking sector Royal Bank of Scotland continued its strong run of late up 3 per cent, as was Barclays.

Sterling against the dollar was virtually unchanged and although gilt prices were down a touch the rating downgrade had been expected and caused very little worry in financial markets. In political terms the heat does seem to be increasing on the Chancellor in front of the Budget on 20 March.

In the US their stock market has opened strongly after the election results in Italy showed the centre right leading the race.

Local companies Pennon and Flybe were relatively quiet in afternnon trading with Flybe unchanged and Pennon down 6p at 657p after Nomura cut its price target for the shares from 710p to 705p.

The largest faller of the day in the FTSE 100 was Reckitt Benckiser as the US pharmaceutical regulator, the FDA, approved two generic versions of their Herion addiction drug. The shares were off 138p at 4378p