London stocks down
London’s benchmark FTSE 100 Index drifted back into the red today after earlier appearing to shake off uncertainty over the global situation.
The blue chip index opened on the back foot with an early move into negative territory following an overnight fall on Wall Street where investors were unsettled by fresh video footage of al Qaeda leader Osama bin Laden.
And despite a mid-morning move into the black, the Footsie was back below its opening mark by lunchtime – down 7.7 points at 4244.9
Traders will be hoping for some positive direction from Wall Street where the second anniversary of the September 11 terrorist attacks had been expected to dominate trading today.
The Dow Jones Industrial Average is expected to open flat or just above its opening mark but US economic data due later today could provide fresh impetus for the recent revival in London, with figures due on the balance of trade as well as import and export sales for August.
Among the blue chip stocks making some progress in London was battered insurance giant Royal & Sun Alliance which recovered some ground lost in the week since it announced it was calling on investors for more cash.
In a generally downbeat session a 3.5p gain to 116.5p was enough to put Royal & Sun at the top of the Footsie risers board just ahead of rival Legal & General which climbed 2.75p to 100.75p, and Norwich Union owner Aviva which gained 3.5p to 511.25p.
Meanwhile aerospace and defence giant BAE Systems lost hold of early gains despite posting a solid set of interim figures.
The company initially saw its shares lift 2p to 176p after highlighting a robust performance from passenger jet maker Airbus for higher profits in the first half but by lunchtime it was trading 1.75p lower at 172.25p.
Also in the top flight, investors piled into Associated British Foods – which climbed 8p to 537.5p – after directors bought more of its shares.
Elsewhere, trains and buses group National Express lost 9.75p to 596p despite reporting an 11% rise in first half profits.
And ports to shipping group P&O dipped 10.75p to 250.25p despite a stronger performance in its ports business driven by growth in Asia but this was offset by disappointing news from its ferries operation.
And pharmaceuticals group Galen soared 6% or 39p to 647.5p after it agreed to sell rights to oral contraceptive Loestrin to Barr Laboratories.
