Footsie dips back in early trading

The FTSE 100 Index has fallen back below 3900, off 40.6 points at 3864.6.

Weak trading on Wall Street last night is to blame, with both the Dow Jones Industrial Average and tech-laden Nasdaq closing lower.

Banking stocks, which fared well in yesterday's bullish run, are on the back foot. Lloyds TSB has lost 13.5p at 418.75p and Abbey National has fallen back 13.5p at 544p. In the hard-pressed insurance sector, Aviva has slipped 9p to 384.5p.

Oil giants BP and Shell are also down, off 3.5p at 439p and 1.75p at 408.25p respectively, despite expectations of a rise in the price of crude.

United Utilities is trading at 595.5p, up 2.5p, after reassuring the market that it sees its first-half results as being in line with its expectations.

Scottish Power is up 2.5p at 366.5p after UBS Warburg issued a 'buy' rcommendation with a 435p price target.

Corus is trading at 38.25p, up 2.25p as Brazilian currency weakens, so making its $4.3bn (€4.3bn) acquisition of Brazilian steelmaker Companhia Siderurgica Nacional cheaper.

But among smaller stocks, fashion chain New Look has umped 6p at 263p as full-year profits forecasts were raised on a strong half-year update.