Morning Markets: FTSE falls on utilities price warning

The FTSE 100 slumped on opening this morning with utilities companies among the losers following Ofwat's call for lower water bills.

The City's blue chip index was down 6.10 points (0.14%) to 4,487.63, as water and sewage-related firms struggled. Water regulator Ofwat outlined proposals that would see the average water bill cut by £14 to £330 before inflation, between 2010 and 2015. United Utilities Group has plunged 6.07% to 472p, while Severn Trent has fallen 4.58% to £10.62. Pennon Group is down 3.84% to 488p. On the bright side, mining and resources firms have rallied, with Fresnillo up 3.98% to 613.5p. Xstrata has climbed 2.73% to 744.8p while Kazakhmys, Vedanta Resources and Rio Tinto have also made early ...