FTSE in negative territory

Miners left the FTSE 100 Index in negative territory today as traders awaited economic rescue plans from the US.

The London market was 42.4 points lower at 4265.2 by mid-morning ahead of expected announcements on a new bailout for US banks and a multi-billion economic stimulus package.

More mammoth losses for Swiss giant UBS – at 8.1 billion Swiss francs (£4.6 billion) in the fourth quarter – meanwhile put bank stocks under pressure.

The sector was in the spotlight today as the former bosses of Royal Bank of Scotland and HBOS apologised for the events that led to rescue by the taxpayer.

RBS shares were down 0.2p at 24.6p, while Lloyds Banking Group – which now owns HBOS – shed 2p to 98.5p.

Elsewhere in the sector, HSBC fell 14.25p to 541.25p and Barclays dropped 0.9p to 115.3p, giving up some of the gains seen yesterday after its better-than-expected annual profits.

Heavyweight miners did the real damage, with the sector accounting for the Footsie’s top six fallers as copper aluminium and zinc prices eased.

Kazakhmys was the leading faller, down 11%, or 35.5p to 286p. It was closely followed by Xstrata and Anglo American, which shed 57.5p to 737p and 100p to 1402p respectively.

Cable & Wireless meanwhile was on the back foot despite a trading statement reassuring it was on track to meet full year earnings guidance. Shares fell 6.7p to 157.1p, as analysts said profit taking was behind the 4% fall.

Among the gainers, oil prices below 40 dollars a barrel left airline British Airways as the leading Footsie performer. Fellow transport firm FirstGroup followed close behind, adding 6.75p to 301.75p.

Elsewhere, struggling sportswear chain JJB lost 0.5p to 12.5p, or 4%, after it announced plans to put its loss-making lifestyle division into administration.