FTSE continues to drift

The FTSE 100 Index drifted lower today after heavy losses in New York and Japan overshadowed gains by Morrisons and Cadbury Schweppes.

Japanese shares fell to their lowest level for six months as inflation fears in the United States continued to weigh on global markets.

The Dow Jones Industrial Average was also on the back foot overnight which prompted caution from investors in London today as the Footsie eased 4.9 points lower to 5664.9 by mid-morning.

Shares in Morrisons gained 1% or 1.25p to 194.25p amid speculation that executive chairman Ken Morrison was poised to take a back seat at the supermarket giant his father founded more than 100 years ago.

The move was expected to coincide with the appointment of Heineken’s Marc Bolland as chief executive as Morrisons looked to recover from its recent problems following the £3bn (€4.4bn) takeover of Safeway.

Cadbury Schweppes was also on the front foot – up 4.5p to 507.5p – after the drinks and sweets maker said revenues growth was running near the top end of expectations for 2006.

And shares in Lloyds TSB lifted 6p to 517p as the appointment of investment bank Lehman Brothers as one of its brokers triggered fresh rumours of a bid for the high street bank.

But BAA shares fell 2% or 15p to 932p after a report said plans by Spanish firm Ferrovial to buy enough BAA shares to stop rival bidder Goldman Sachs breaking up its agreed £10.3bn (€15bn) takeover could be thwarted by regulators in Australia, where BAA has interests in six airports.

PartyGaming was the session’s heaviest faller after the founders of the Party Poker company announced plans to sell an 8.7% stake.

The 350 million shares are expected to fetch between 119p and 120p and the stock fell 5% or 5.75p to 116.5p today.

Elsewhere, shares in no-frills airline easyJet were up 2% or 6.25p to 352.25p after it said its strong Easter performance continued into May when it carried 2.94 million passengers.