Mining stocks surge but FTSE falls

Mining stocks were back in focus on the London market today after it emerged BHP Billiton had made a higher offer for Australian firm WMC.

The move by BHP, which trumps an earlier approach from rival Xstrata, failed to provide sufficient momentum for the FTSE 100 Index, which stood 10.8 points lower at 5016.4 by mid-morning.

Analysts said the lacklustre start reflected higher-than-expected US consumer borrowing figures – data which raised concerns about interest rate hikes in the US. The New York markets were

expected to open lower later today.

In the FTSE 250 Index, ports and ferries group P&O was out of favour after announcing losses of £210m (€304m) for last year due to the cost of a major shake-up at its ferries business.

Shares in the company headed the second flight fallers, listing more than 4% or 13.5p to 306p.

French Connection shares were also under pressure – down 3% or 8.75p to 307.5p - following its announcement of a further deterioration in sales.