Footsie dips in thin trade

The FTSE 100 Index is off 8.6 points at 3892.

And with the London market on a half day and many European bourses shut there appears little prospect of an improvement in demand.

Supermarkets have made most of the running ahead of crucial trading updates in the New Year as Safeway is up 4p to 207p, Sainsbury's has risen 2.5p to 280p and Tesco has lifted 0.5p to 193.75p.

The market is also being sustained by financial stocks with Abbey National 9p stronger at 515p, Royal Bank of Scotland up 6p at 1477p and Prudential 5p brighter at 440p.

Most nerves were being shown in the travel sector as British airports remain on alert amid fears of a New Year terror attack.

BAA has fallen more than 3% - 15.5p to 485p - while British Airways is the session's second highest faller, off 4p at 135p.

Elsewhere, news that Aggreko chief executive Philip Harrower has died in a car crash in the United States has sent shares in the temporary power supplier down 3%, or 5p, to 148p.