FTSE waiting on Dow reaction to unemployment figures
Blue-chip shares were treading water today at the end of another bewildering week for investors.
The FTSE 100 Index, which has fluctuated wildly in the last week, was caught in a narrow trading range and reached lunchtime 13.4 points ahead at 3610.4.
Figures showing a further decline in manufacturing output failed to knock the Footsie out of positive territory and attention was now focused on Wall Street.
With unemployment numbers due in the US later today, analysts are still uncertain about which way the Dow Jones Industrial Average will go.
Ongoing fears over the looming conflict in Iraq and renewed tensions with North Korea have already sent the Dow to levels not seen for four months.
Heavyweight oil stock Shell proved to be a drag on the London market after disappointing analysts with its annual results announcement yesterday.
Shell was 1% lower – off 4p at 356p – although rival BP recovered early losses and was up 0.25p at 382.75p ahead of its own results, due next week.
Like Shell, chemicals giant ICI continued to suffer from an announcement made in the previous session.
ICI, which fell 7% yesterday after announcing flat profits and warning that some of its planned cost reductions would be delayed, was off another 3%, or 6p, to 184p.
And three companies at risk of having their credit ratings reduced by Standard & Poor’s following a review of their pension liabilities were under pressure.
In the wake of the report Rolls-Royce fell 2p to 90.5p, engineering group GKN eased 4.25p to 177.25p and FTSE 250 Index glassmaker Pilkington slipped 3.75p to 59.75p.
The session was a quiet one for major corporate news but two FTSE 250 Index companies sparkled after issuing trading updates.
Computer services group LogicaCMG cheered investors by announcing it remained on track to achieve £60 million annual cost savings and that it had also seen some of its key markets stabilise.
Shares rose 9% – up 10p to 119p – while low-cost airline easyJet surged 11% or 23.25p to 228.5p on the back of strong passenger numbers.
Meanwhile, British Energy, the struggling electricity giant, saw its shares rise almost 18%, up 0.90p to 5.95p after announcing a four year supply deal with Centrica.
The news, which gave British Energy investors some hope that a proposed £1.5 billion bail out for the business will be agreed in principle next week, also helped Centrica shares rise 5p to 160.25p.
