Market round-up: Tobacco stocks smoking as FTSE 100 investors seek shelter from Greece

Cigarettes — Tobacco stocks rose Tuesday 16 June as FTSE investors sought shelter from Eurozone instability Getty

The FTSE 100 trended downward on 16 June to hit a five-month low but rebounded to close out the day not far from where it began. Investors were still sceptical about Greece and its place in the eurozone.

Numbers showing a return to inflation in the UK also did nothing to stir confidence.

"Getting inflation under control was a task that used to haunt chancellors. Now, the conundrum is making sure it stays at an optimum level which will ensure growth without being too high to stifle spending," says AJ Bell investment director Russ Mould.

"Businesses can now breathe a sigh of relief that the latest figure shows the deflation threat has passed with inflation in May at 0.1%," Mould said. "Inflation is now expected to remain at near zero for the short term." This, he noted, will boost household spending power — propelling the economy.

The FTSE 100 trended downward but barely budged from where it began closing down -0.01% at 6,710.10.

Investors turned to tobacco companies British American Tobacco and Imperial Tobacco Group, which rose 2.92% and 2.24% respectively.

Mining stocks Anglo American, which fell 2.23%, and Rio Tinto Plc, which took a 2.17% hit, after copper prices fell to a three-month low.

FTSE 100 biggest risers