FTSE remains stable

The London market struggled to find direction today as falls from heavyweight miners and Vodafone offset relief over Royal Bank of Scotland’s losses.

NatWest parent RBS rose 4% after fears of £1bn(€1.3bn)-plus losses were not realised in its interim results.

The news boosted some of its banking rivals, but the wider FTSE 100 Index flitted between positive and negative territory, up 5.2 points at 5482.7 in mid-morning trading.

A broker downgrade for mobile phone giant Vodafone caused the group to fall more than 1%, down 1.6p at 137.75p.

Weaker mining stocks also put the market under pressure.

However, RBS shares were 8.5p higher at 241.5p, after the company reported a half-year deficit of £691m (€878m) and said it was comfortable with its balance sheet position.

Barclays shed 4.5p to 370.5p after its results yesterday, but HBOS lifted 2.25p to 337p and HSBC added 10.5p to 853p.

Meanwhile, oil prices below US$118 a barrel boosted travel firms.

TUI Travel lifted 7.25p to 227.75p and British Airways rose 8.25p to 263.25p.

Gas exploration company BG gained 21p to 1127p after it announced a further crude oil discovery off the coast of Brazil.

On the fallers board, miners were suffering share losses of up to 4%, with Kazakhmys the top faller, down 58p at 1276p.

For Vodafone, shares were down 1.9p to 137.45p after Goldman Sachs downgraded the stock to neutral from buy and said it was concerned about weaker revenue growth in Europe.

But Goldman Sachs had a positive impact elsewhere in the market, with an upgrade for Marks & Spencer supplier Northern Foods causing the company’s share price to lift 5% or 3p to 58.25p.

H Samuel and Ernest Jones jeweller Signet, also in the FTSE 250, enjoyed a second day of gains after an upgrade from Dresdner Kleinwort following reassurance yesterday over US margins.

Shares rose 6%, or 3.75p to 59p.