Footsie off to subdued start

Concerns over the high price of oil and the weak US dollar combined to put the London market in a subdued mood today.

Investors were also worried that the listings of Virgin Mobile and Premier Foods might be delayed, further undermining confidence in the strength of the FTSE 100 Index.

In the first hour of trading, the Footsie slipped 0.4 points to 4338.5.

Pressure on exporters and those firms that report the bulk of their earnings in US dollars grew after the greenback anchored above the 1.87 rate against the pound.

Medical devices maker Smith & Nephew was among those to suffer, heading the list of Footsie fallers with a 13.5p drop to 554.5p.

Blue-chip insurer Prudential advanced 7.75p to 445.5p as investors betted on the conclusion to the long-running sale of its 79% stake in online credit card business, Egg. Shares in Egg also cheered 6.5p to 158p.

Outside the top flight, clothing retailer Austin Reed weakened 7p to 126.5p after like-for-like sales fell 5% in the 23 weeks to July 10 due to the under-performance of the Country Casuals womenswear range.

Fashion brand Burberry was also faring poorly – despite unveiling a 14% rise in sales over the first three months of its financial year. Shares slipped 5.25p to 393.5p.