Footsie awaits US GDP estimates

London’s blue-chip shares approached the release of crucial US economic data in robust mood today.

By lunchtime the FTSE 100 Index stood 21.3 points higher at 4287 as the focus of world markets switched to third quarter GDP estimates in the US.

With jobless claims data also expected, developments on the corporate front in London took second billing to events across the Atlantic.

The major move in the UK came from chemicals giant ICI after a third quarter profits fall of 13% proved to be better than expected.

ICI remained cautious about immediate prospects, yet offered investors encouragement that it can eventually pull away from recent turbulence.

Shares surged following the figures, rising 7% or 12.75p to 191.5p.

Mining stocks were also in favour after US copper producer Phelps Dodge said it would continue to mothball spare capacity.

The comments raised hopes for higher copper prices as BHP Billiton rose 4%, or 18p, to 467p while Rio Tinto advanced 37p to 1434p and Anglo American added 30p to 1193p.

The banking and insurance sector was mixed, with Aviva near the top of the Footsie losers board, down 12p to 476p, and Legal & General dropping 0.75p to 103.5p. Abbey National eased 4.75p to 548p while HBOS slipped 0.5p to 678.5p.

However, Prudential recovered an early 4.25p loss to stand 5.75p up at 452p and Royal & Sun Alliance was 1.25p higher at 85.75p.

Elsewhere, supermarket takeover target Safeway was barely affected by news that retailer entrepreneur Philip Green had pulled out of the running for the UK’s fourth biggest grocer.

The decision leaves just Morrisons in the frame, but Safeway shares still rose 2.25p to 291.5p as investors eyed a long-awaited conclusion to the saga. Morrisons was also up by 2.25p at 291.5p.

The rest of the retail sector proved less resilient, with Marks & Spencer down 8.75p at 284.75p, Dixons off 3.25p at 136.25p and Argos owner GUS 7.5p lower at 722.5p.

Outside the top flight, a clutch of housebuilders again struggled in the face of concerns over the sustainability of the housing market.

Those on the way down included Westbury, off 15p at 372.5p, and George Wimpey, down 13p at 325p.

And British Energy shares were back under pressure amid concerns about a fresh blow to its finances.

The company reported temporary shutdowns at two of its plants and said the disruption was likely to have a “material” impact on its financial performance. Shares were almost 5% lower, down 0.25p at 5p.