FTSE eases back

Blue-chip shares continue to be dogged by uncertainty as the FTSE 100 eases back towards the 4000 barrier.

By 9am, the Footsie was down 13.8 points at 4063.3 after seeing the Dow Jones Industrial Average slip for a second successive day in New York.

London's performance also reflected a mixed session for corporate updates.

Former building society Northern Rock offered encouragement, rising 2p to 699p after reporting record lending figures in its half-year results.

Northern added that demand for remortgaging would more than offset any pressure caused by slowing house prices.

But former blue-chip Marconi Corporation fared less well after reporting a sharp fall in first quarter sales and offering little sign of an upturn in the current three month period.

The stock, which was created following Marconi's £4.7bn (€6.6bn) debt-for-equity restructuring, fell 0.75p to 67p.

Retailer New Look was also struggling - down 9p or 3% to 276.5p - despite reporting an improved sales trend following a tough spring season.