Footsie heads into positive territory again
The Footsie index of 100 leading stocks is hovering around its opening price, up 6.2 points at lunchtime to stand at 5569 after a morning which has seen it rise and fall.
Economists are praying that US Federal Reserve chairman Alan Greenspan will take action tomorrow to kick-start the American economy by cutting 75 basis points from interest rates, which could pave the way for an April cut in the UK.
The City is also looking forward to UK inflation figures due out tomorrow. Underlying inflation is forecast to remain unchanged at 1.8%, but banking giant HSBC says the headline rate is expected to fall due to the cut in mortgage rates during the month.
New economy stocks are once again weighing on the market in London trading, reflecting the continuing pessimism about high-tech shares and the global economy.
Computer services group Logica is off by more than 6% or 72p at £10.79. Fellow computer services group Dimension Data is down 12p to 340p; while software group Misys is off 35p at 525p.
Among the telecoms stocks, Energis is down nearly 8% or 26½p at 322½p; Colt Telecom is down 54p at 841p; and Telewest Communications has fallen 4p at 116p despite securing a £2.25 billion debt restructuring deal.
BT is also on the slide, down 4p at 501p, after hinting it may be willing to accept a debt rating downgrade. Analysts say this would make a rights issue to shareholders less likely.
Today's confirmation that mining company Billiton will be merging with Australian rival BHP in a £20 billion deal has pushed Billiton to the top of the Footsie risers board, with its shares up by 12% or 34½p to 324¾p.
Investors are also putting their money into shares in rival mining firms, with Rio Tinto sparking 37p to £12.12; Anglo American is up 105p at £42.09; and Footsie 250 rival Lonmin is up 6% or 55½p at 935½p.
In a light day for corporate results, shares in furniture retailer and manufacturer MFI have fallen by ½p to 99p despite it reporting a 55% jump in full year pre-tax profits. Analysts say its £45.4 million profits were slightly below their expectations.
