FTSE records slight rise

The London market struggled for direction today amid global economic and political uncertainties.

Nervousness over developments in Thailand meant the Australian and Japanese stock markets closed 1% lower, although the FTSE 100 Index gained 10 points in early trading and other European markets remained buoyant.

However, following the release of the minutes of the Bank of England’s most recent meeting on interest rates which indicate a further hike is on the cards in November, the Footsie dropped back before edging 1.8 points ahead to 5833.6 by mid morning.

The performance of banking stocks, following recent falls, saw HSBC lift 6.5p to 956.5p and Halifax Bank of Scotland cheer 17p to 1056p. The latter improved in the wake of a strategy update published for investors yesterday.

Man Group rose almost 2% or 8p to 433.75p on speculation that Goldman Sachs could be making a move for the hedge fund firm.

And steel giant Corus topped the risers board with a gain of 3% or 8.5p to 368.25p after Morgan Stanley upgraded it to overweight.

Mining stocks were pulling the other way as the prices of copper and gold and base metals declined. Kazakhmys dropped 51p to 1159p, Antofagasta fell 13.25p to 425p and Xstrata was off 49p to 2102p.

Elsewhere, British Energy continued to struggle – down 11.5p to 571p – after issuing another gloomy update on its output performance earlier in the week. And amid signs of falling wholesale gas prices, fellow power station operator Drax was 23p lower at 832.5p.

The main results interest came from retailer Woolworths, which rose a penny to 34p – despite posting half-year losses of £66.8 million. Traders drew some comfort from signs of improved sales at the start of the second half.