FTSE in subdued mood
The London market was in subdued mood today despite cheer elsewhere over the US pulling out of recession.
The FTSE 100 gained just 16.9 points to 5154.6 by mid-morning despite a much stronger 2% rise for Wall Street’s Dow Jones Industrial Average and firm gains in Asia.
In the UK – which remains one of the last major economies officially in recession – traders were awaiting fresh US data this afternoon before making any major moves on a slow day for corporate news.
The modest gains came from the financial sector as asset manager Man Group bounced back 6% or 18.3p to 326.3p after heavy falls earlier in the week.
Lloyds Banking Group also enjoyed a 4% rise of 3.4p to 89.4p as markets awaited news of its £21bn (€23.4bn) fundraising plans. The bank also gained from a Credit Suisse upgrade.
Advertising and media giant WPP followed close behind, adding 25p to 570p as investors cheered the firm’s forecast of a “marked improvement” in second-half profits.
Several heavyweights limited the advance of the index however including mobile phone giant Vodafone off 0.85p at 138.1p.
It was followed by oil giants BP and Royal Dutch Shell, down 1.9p to 584.6p and 11p to 1802p respectively. The duo’s third-quarter profits this week were both hit by lower oil prices but BP’s results outshone its rival.
In the second tier, struggling transport firm National Express added 3% or 9.6p to 330.6p after its biggest shareholder attacked it for dismissing a merger with rival Stagecoach too quickly. Traders hoped the public spat may push the firm into reconsidering a deal.
Elsewhere rail and plant firm Jarvis was down 0.5p to 16.25p or 3% after “extremely preliminary” talks over a possible offer came to an end.
