Flat start on FTSE

London's leading shares started the week flat as traders awaited results from British banking giant HSBC.

After inching back above the 4100 mark in the opening minutes following a sharp fall on Friday, the FTSE 100 Index slipped back below its opening mark to sit 0.7 points lower at 4097.7 after an hour of trading.

Commentators said that a lacklustre night on Wall Street on Friday lay behind the flat start.

With results imminent, HSBC inched upwards 0.5p to 765p. But ahead of a busy week for the sector, other banks were in negative territory with Abbey National off 3.5p at 538.5p, while Barclays fell 1.75p to 456.75p. Royal Bank of Scotland was unchanged at 1731p.

Mining group Xstrata was the biggest mover in early trading, down just under 4% or 17.25p at 420.5p, after announcing a £372m (€530m) bond issue to restructure its debts in the wake of the acquisition of Australian copper and coal company MIM Holdings.

But acquisitions also drove some positive movement with software group sage near the top of the Footsie risers, gaining 2p at 187.75p after announcing the £66 million takeover of South African group Softline.

Outside the top flight oil and gas group Cairn Energy was up 4% or 14p at 326p after announcing plans to buy Shell's stake in two fields in Bangladesh.