FTSE subdued

The London market was in subdued mood today despite a much needed boost for retail shares amid signs that shoppers were heading to the high street before Christmas.

The FTSE 100 Index was down 20.6 points to 6139.2 by mid-morning as heavyweight financial and oil stocks weighed on the market, while November’s inflation rate came in higher than expected at 2.7%.

The falls offset a good performance by the supermarkets and Marks & Spencer, which appeared to be one of the main beneficiaries after two research companies said the number of people visiting the high street was up on the previous weekend.

M&S lifted 8.5p to 693p while Next was up 10p to 1770p and Alliance Boots was 8p higher at 820p.

Tesco, which extended its presence in China by taking hold of a joint venture, was up 7p to 392.75p, with rival Sainsbury’s ahead 4.75p to 401.75p and Morrisons up 3.25p to 261p.

Meanwhile, shares in Cadbury Schweppes surged 3% higher, up 17p to 552p, after its trading update reiterated guidance given in October despite problems in Nigeria and the UK, where a summer salmonella scare cost it £30 million compared with the £20m (€29.6m) initially expected.

But banking stocks were on the slide with Alliance & Leicester down 20p to 1102p and Barclays off 9p to 714p as investors banked profits following a strong rise in the light of apparent takeover interest from Bank of America.

BP was down 7p to 577.5p amid ongoing concerns in the US over the investigation into the explosion at its Texas City refinery last year. And Royal Dutch Shell was off 25p to 1799p after recent problems in Russia.

In the second tier, newspaper publisher Johnston Press dived 25.25p to 398.25p, a fall of 6%, after it said advertising revenues were down.

But aerospace engineering business GKN was up 3.75p to 287p following its guidance that profits would be slightly ahead of expectations.

And a profits rise at Carpetright buoyed shares in the retailer by 15p to 1193p, even though concerns remained about costs.

Elsewhere, Harry Potter publisher Bloomsbury was down 29% or 90p to 220p following last night’s stark profits warning.