Poor Wall St start hinders FTSE

A poor start on Wall Street helped take the shine off the London market today.

After climbing 49 points to an intra-day high of 4675, the FTSE 100 Index slipped back to close 28.6 points up at 4655.2.

Weaker oil prices had helped to buoy spirits, with the cost of a barrel of US light crude retreating below the 53 US dollar mark.

But the Dow Jones Industrial Average was hovering around its opening mark shortly after London’s close amid mixed economic and corporate news in New York.

Data showed US consumer prices accelerating in September, a gain that may boost the Federal Reserve’s determination to hike interest rates to head off inflation.

Lacklustre third quarter results from auto giant Ford also did little to help boost US traders’ spirits.

However, one piece of really good news for brokers around the world came from Reuters in the form of increased demand for financial information.

The London-based news and information group topped the Footsie risers with an 8% or 27.5p gain to 350.5p after it said it expected a recent trend of gradual improvement to continue into 2005.

Harpic-to-Mr Sheen maker Reckitt Benckiser also cheered investors by raising its full-year target for revenues growth following a better-than-expected performance in the third quarter.

Shares in Reckitt were in second place in the top flight risers with a 5% or 75p surge to 1478p.

Shares in ailing supermarket chain Sainsbury’s picked up nearly 3% or 7p to 249p as the company relieved investors with a back-to-basics revival strategy focused around plans to recruit 3,000 staff.

Oil-dependent stocks benefiting from the weaker oil price included British Airways, up 6.25p to 206.75p and BAE Systems 6.5p higher at 243p.

Just a handful of top-flight stocks were stuck in the red, including Prudential. The insurer topped the Footsie fallers, down more than 7% or 36p to 422p, after surprising the City with plans to raise £1 billion to drive growth in its UK business.

Other insurers were also struggling with Friends Provident off 2.5p at 137.75p and Aviva down 7p at 540p. Royal & Sun Alliance was doing better, however, lifting 0.25p to 75p, and Legal & General was 1.75p ahead at 101.5p.

Elsewhere, housebuilder Bellway fell a penny to 683p as it unveiled a 21.4% rise in profits to a record £205.5 million.

Home shopping group N Brown also dropped 1p to 118p after reporting a 16% fall in profits in the wake of a “significant” rise in bad debts and lower sales at its House of Stirling lending arm.

But chip designer ARM Holdings put on 2% or 2.5p to 87.75p after hailing the success of a new generation of mobile phone and digital camera technology and posting above-forecast third quarter profits.

The day’s biggest risers included Reuters, ahead 27.5p to 350.5p, Reckitt Benckiser lifting 75p to 1478p, British Airways up 6.25p to 206.75p and mmO2 advancing 3p to 104.5p.

The largest losers were Prudential, off 36p to 422p, William Hill down 14.5p to 502p, Xstrata losing 22.5p to 852.5p and Antofagasta weakening 23p to 1042p.