London shares move into positive territory

London’s leading shares edged back into positive territory today, drifting in morning trading on what is expected to be a lacklustre end to the week.

By mid-morning, the benchmark FTSE 100 Index had reversed earlier losses to stand up 3.6 points at 4028.4 with investors appearing content to wait until Monday for a clearer picture of what impact yesterday’s mixed economic data will have on shares.

With Wall Street closed for the US Independence Day holiday, traders were forecasting a quiet session, with little in the way of economic data or company news to give shares any direction.

June’s house price index from mortgage lender Halifax showed further evidence of the UK’s cooling housing market.

In the blue chip Footsie index, media shares gave some direction, with information group Reuters topping the table with an 8p rise to 190p.

Financial Times owner Pearson was also up, gaining 8p to 570p, while Reed Elsevier rose 6.25p to 498.25p and Daily Mail & General Trust edged 3.5p higher to 573.5p.

Financial stocks were enjoying small gains meanwhile. Royal Bank of Scotland rose 6p to 1701p, HBOS gained a penny to 782p and Abbey National jumped 2.5p to 473.75p.

Insurers had a mixed start with Prudential up 3.25p to 366p, Royal & Sun Alliance ahead 0.75p at 139.5p. But Norwich Union owner Aviva was off 0.25p at 429.75p.

On the corporate front, housebuilder Redrow confirmed that house prices had continued to grow, albeit at a slower rate than last year. Shares eased a penny to 286.5p.

WHSmith saw its shares rise 0.25p to 363.25p as the retailer-to-news distribution group unveiled Kate Swann, the head of catalogue retailer Argos, as its new chief executive.

Aerospace and defence company BAE Systems saw its shares ease 1.75p to 142.75p despite announcing a link up with Italian firm Finmeccanica to bring together their defence electronics activities.