HP profits shortfall pushes FTSE down

Downward pressure from computer giant Hewlett-Packard and soaring oil prices failed to have a major impact on the London market today.

Despite heavy losses by New York shares last night, the FTSE 100 Index held steady, 8.3 points below its opening mark at 4319.8 by mid-morning.

Disappointed traders sent all three main indices in New York to lows for the year after HP revealed third quarter profits short of expectations amid problems at its servers and storage division.

Record oil prices added to the pressure, although the cost of a barrel of crude in New York dipped slightly to 45.34 US dollars by mid-morning.

A mixed bag of corporate news was guiding the London market.

In the top flight, British Airways fell 1.75p to 209.75p as the company - already battered by soaring fuel costs – awaited the result of a strike ballot involving thousands of its check-in staff.

The main upward movement came from asset manager Schroders, which rose 13.5p to 568p after announcing half-year profits ahead of expectations. The performance also lifted fund manager Man Group, up 36p to 1355p.

Outside the top flight, a clutch of tech stocks resisted pressure from the poor Hewlett-Packard statement, with LogicaCMG up 1.25p to 151.5p and software and computer services group Computacenter cheering 2.75p to 294p despite earlier losses.

IT consultancy Detica added 11p to 573.5p after unveiling a major new contract with Customs & Excise.

Hotels group Millennium & Copthorne also moved more than 3% higher after saying it was selling its prestigious Plaza hotel in New York for about £370 million. Shares climbed 10.5p higher to 314p.

But Jarvis lost 4% of its value – off 1.75p to 37.75p – after saying it was no longer preferred bidder on a school building project awarded by Fife council.