London market makes subdued start

The London market got off to a subdued start this morning as investors took profits from strong gains yesterday.

Then the FTSE 100 Index soared 144 points as speculation grew that interest rates would be trimmed this week on both sides of the Atlantic.

But this morning, after modest gains on Wall Street last night, trading was more subdued and the top flight dipped 13.1 points to 4128.4 by 9am.

This was despite a busy morning for corporate news.

Energy group Scottish Power was one of the biggest risers, adding 6p at 378p after its interim results met expectations.

High street retailer Marks and Spencer also showed its recovery was powering ahead with a surge half-year profits today.

The figures came in at the top end of forecasts but a less buoyant outlook for the coming months depressed trading. Shares slid 15.5p to 364p.

Among smaller firms, recently demoted British Airways eased 4.75p to 154.5p.

Its interim figures came in on target this morning, prompting investors to take profits after a run of recent gains.

But computer services group CMG sparked 7p to 84p, a 9% jump, after unveiling plans to merge with rival Logica, which jumped 6p to 177p.

Terms have been agreed on a deal to create LogicaCMG, which will be 60% owned by Logica shareholders and 40% by CMG.