FTSE dragged down by BA owner, IAG

Search company or market
Search company or market:
Refresh this page Launch Marketwatch ticker
London | Wall Street | Asia

(Close): Shares in BA owner IAG dragged the FTSE lower on Friday, after the index initially opening higher.

The airline group fell nearly 3.5%, despite news that Qatar Airways had built a 10% stake in the firm.

Overall, the FTSE 100 closed down 0.9%, or 61 points, at 6,749.4.

BT shares were also lower, down by 2.7%, after its third quarter results revealed its pension deficit had swollen to £7bn and it is introducing a 16-year recovery plan.

Eurozone inflation numbers confirmed a slip for the 19-strong country bloc into deflation, worsening from December's -0.2% to -0.6% in January.

This though was largely thanks to an 8.9% fall in energy costs with less volatile prices showing inflation.

Deflation worries investors as it can put people off spending while they wait for further price falls.

Oil prices were slightly higher in the wake of Thursday's news that US stockpiles have hit record levels. Brent crude was trading at $49.25 a barrel, while US crude was up 1.4% at $45.17.

On the currency markets, the pound slipped 0.21% against the dollar to $1.5034, and was flat against the euro at €1.3311.