World economy worries drag Footsie down

London shares are struggling as traders search in vain for positive economic news.

By lunchtime, the Footsie index of 100 leading stocks had extended its retreat of yesterday, falling another 66.8 points to 5100.8 amid continued worries on the state of the world economy.

And the European Central Bank's decision to keep interest rates on hold did little to lift spirits in London.

Banks weighed most on the market, with HBOS down 35½p at 784½p, Lloyds TSB off 13p at 713p, Barclays down 56p at £20.92 and HSBC 6½p lower at 779½p.

Drugs firms were also helping to pull the market into negative territory, with GlaxoSmithKline falling 45p to £18.47 and AstraZeneca down 86p at £31.34.

However, telecoms giant Cable & Wireless led the Footsie fallers' board after receiving a downgrade from Morgan Stanley. Shares slipped 23p to 316p.

It was joined on the way down by mobile phone giant Vodafone, off 3½p to 161¾p, and BT, 2¾p lower at 362¼p.

Insurance giant CGNU was also heading lower, down 34½p at 865½p, despite reporting record new business figures boosted by strong pension sales.

A number of shares did spark ahead during the morning and included a clutch of media stocks after their falls of yesterday.

Advertising giant WPP was up 4%, rising 21p to 580p, despite seeing its attempt to wriggle out of its bid for Tempus rejected by the Takeover Panel.