FTSE recovers after poor start

The FTSE 100 Index pulled out of its tailspin today after earlier diving below the 4000 barrier.

Commodity and financial stocks initially suffered a further sell-off after fears of a deep global recession caused the Dow Jones Industrial Average to close 7.7% lower and Tokyo’s Nikkei index to shed more than 6%.

But most of the decline was accounted for in London’s 5% slump on Monday, meaning the FTSE later stood 27.7 points higher at 4093.2 by mid-morning.

The mood was helped by expectations for a positive start to trading on Wall Street later in the day.

A number of mining stocks recovered from their battering on Monday and earlier on today, with Vedanta Resources up 11% or 56.5p at 572.5p and Antofagasta ahead 27p at 428.75p.

Supermarket chain Tesco was the market’s main success story after third quarter trading figures, including 2% growth in UK like-for-like sales, reassured the City. Shares raced ahead 8% or 23.7p to 311.7p as analysts reacted to signs that Tesco was so far managing to fend off its discount rivals.

Game Group experienced fluctuating fortunes after reporting further like-for-like sales growth, albeit at a much weaker rate to earlier in the year. Game shares opened lower, then recovered to show a 5% gain before settling 1% or 1.75p lower at 148.5p.

JD Sports Fashion also reported slower sales, but shares in the high street trader were barely affected – down 0.75p to 229p – as the downturn had been well flagged in advance.

There was no such relief for pubs chain Greene King after it said half-year profits fell 15% and it forecast further sales pressure in the New Year. Shares were down 5% or 19.5p to 364p, while Punch Taverns was off 6.75p at 99.5p.