FTSE makes early gains

London's benchmark FTSE 100 Index has moved back into positive territory, to stand up by 11.3 points at 4260.1.

Blue chip shares recovered some of the ground lost in yesterday's lacklustre session, but trading is expected to remain light as investors wait for major US economic data later today.

Retail stocks dominated the Footsie, where Kingfisher rose 3.25p to 270p, Next gained 13p to 1149p, Safeway climbed 1.75p to 285.75p and Sainsbury's moved 1.5p higher to 273p.

But early attention was focused outside the top flight, with a clutch of FTSE 250 companies updating the City on earnings.

Most prominent among the rises was cement group RMC, which climbed 38p to 600p despite reporting a 37% fall in first half pre-tax profits, due mainly to difficult trading conditions in Germany.

Elsewhere, bus and rail operator Go-Ahead saw its shares fuelled by news that a massive expansion of bus services in London boosted annual profits by 32.6%. Shares rose 32.5p to 915p.

Budget airline easyJet was also riding high, climbing 6p to 260p, after reporting strong passenger figures for August.

But on the downside, pubs operator JD Wetherspoon fell 18p to 236.5p after unveiling slowing sales figures.