FTSE lower at midday

World markets were dragged lower today after cautious comments from the US Federal Reserve curbed enthusiasm for riskier stocks.

In a statement accompanying a decision to leave interest rates at a record low, the central bank said that financial conditions were "less supportive" of economic growth - seen as a reference to Europe's debt crisis.

The FTSE 100 Index was 36.7 points lower at 5141.5 as earlier hopes of a positive session for miners failed to materialise.

The sector had been expected to rally following new Australian Prime Minister Julia Gillard's comments about seeking negotiations with miners over a proposed super tax.

Eurasian Natural Resources fell 30.5p to 980.5p and Lonmin dropped 44p to 1593p as economic worries dominated sentiment.

Defensive stocks such as energy firms were in favour as United Utilities added 12p to 533.5p, National Grid lifted 3.5p to 503.5p and British Gas owner Centrica rose 5.4p to 304.4p.

BP shares were also in positive territory - up 2.5p to 336p - after this week hitting their lowest level since the Gulf of Mexico disaster struck in April.

In corporate results, DSG International shares were slightly lower, even though full-year profits of £90.5m (€110.5m) came in higher than expected in the City. The share price fall of 0.2p to 27.3p followed a decent session for the consumer goods sector yesterday.

There were gains elsewhere in the retail sector as Tesco lifted 3.1p to 399.6p and Argos owner Home Retail Group enjoyed a rise of 0.4p to 233.5p.

Shares in transport group Go-Ahead were 91p lower at 1228p after it said revenues from its new high speed services in Kent had failed to match up to expectations due to the impact of recession.

Shore Capital stockbrokers reduced its profit forecast for Go-Ahead by £5m (€6.1m) as a result of the more cautious forecasts in the rail segment.

Meanwhile, shares in household products group McBride fell heavily after it warned of further cost input rises this year and said revenues growth had slowed due to increased pressure from branded products.

Shares slumped 19% or 35.2p to 144p, while blue-chip rival Reckitt Benckiser slipped 81p to 3054p.

There was better news for housebuilders after share price rises for a number of players. Redrow set the pace with a rise of 3.8p to 127.8p, while Bovis Homes added 8.5p to 372.2p and Taylor Wimpey lifted 0.6p to 31.9p.