Some gains for FTSE

London’s leading share index made tentative gains today, but progress was held back as further poor US jobs data capped a disappointing week for global economic news.

US employers cut a worse than expected 125,000 jobs in June compounding investor nerves after a flurry of worrying signs for the recovery in recent days.

The Dow Jones Industrial Average fell more than 80 points and pared back gains on the FTSE 100, which eased from a rise of more than 1% at one stage to close up 32.3 points at 4838.1.

The dollar was suffering a second difficult session amid the concern on America’s economy, with the pound up again to $1.52.

The euro also strengthened, reaching a six-week high against the dollar.

UK markets were given a much-needed boost after a tax climbdown from the Australian government buoyed miners.

The heavyweight sector cheered on news that the harsh super-tax proposals of deposed former prime minister Kevin Rudd would be replaced by a softer regime.

Xstrata was one the best performers, gaining 25.3p to 871.1p.

Elsewhere among commodity stocks, oil and gas firm Cairn Energy rose 20.8p to 422.1p as brokers at Canaccord lifted their target price and said the prospector’s Greenland operations could transform the group.

Another stock benefiting from positive broker comment was engineering and aerospace giant Rolls-Royce, which Investec upgraded to a “buy” after praising its defensive qualities. The firm added 12p to 547p or 2%.

Banks were also making modest gains as the funding fears prevalent earlier in the week eased slightly, leaving Barclays 11.6p up at 267p and Lloyds Banking Group 2.5p better at 54.7p.

Royal Bank of Scotland, which today announced the sale of its Indian retail and commercial banking operations to HSBC for a £63 million premium to net asset value, was 0.6p up at 40.1p. HSBC ticked 1p up to 600.1p.

Tesco rose 5.4p to 382.9p as it faced a showdown with investors over pay plans at Terry Leahy’s last annual meeting before he steps down next March.

More than a third of investors protested at the supermarket’s remuneration report amid concerns over rising rewards for the boss of Tesco’s loss-making US chain Fresh & Easy.

Among the Footsie fallers, mobile phone giant Vodafone was one of the biggest casualties, losing 1.9p to 136.5p as defensive stocks lost some appeal.

In the FTSE 250, Dana Petroleum was the biggest gainer, up 22% or 263p to 1440p after a £1.5 billion takeover approach from South Korea’s national oil company.

And there was more takeover interest today surrounding England cricket sponsor Brit Insurance, which added 12.5p to 900p after the firm rejected a second proposal from private equity firm Apollo worth £824m (€996m).

Another strong performer in the second tier was builders’ merchant Travis Perkins, which added 6% or 45.5p to 754.5p after flagging up better than expected trading and a likely restart of dividend payouts for the first time in two years.

The biggest Footsie risers were Tullow Oil up 54.5p to 1046p, Cairn Energy lifting 20.8p to 422.1p, Lloyds Banking Group up 2.5p at 54.7p and Barclays up 11.6p to 267p.

The biggest Footsie fallers were Smith & Nephew down 34p to 581.5p, BP down 6p at 322p, Inmarsat off 11.5p to 704p and Vodafone down 1.9p to 136.5p.