LONDON (ShareCast) - The Footsie had reverted to positive higher by midday ahead of the release of two first-tier economic indicators in the States on Friday afternoon.
UK equities traded lower throughout the better part of the morning, ignoring overnight losses in US markets which saw the Dow Jones Industrials and S&P 500 fall deeper into the red for September amid on-going geopolitical concerns about both Russia and Iraq.
Vladimir Putin demanded that the European Union re-open a trade pact with Ukraine, threatening immediate retaliatory measures should Kiev implement any part of the deal. Reports out on Friday indicated Putin was open to meeting his Ukrainian counterpart.
As of 12:19, the FTSE 100 was to be seen six points ahead at 6,646.07.
Also weighing on stocks at the margin was a weaker than expected print for Japanese consumer price inflation (CPI) in August. The headline inflation rate slowed to a 3.3% year-on-year pace from 3.4%, with the ex-fresh food measure down to 3.1% from 3.3% (consensus: 3.2%).
"Softer Japanese CPI data reinforced fears of more BoJ easing and hurt the JPY," analysts at UnicreditResearch said.
Friday's focus was also very much on an anticipated Commons vote on UK involvement in a war against the "Islamic State", due at around 17:00.
The outcome is widely expected to support participation and comes after Obama pledged the US's support earlier this week.
US gross domestic product (GDP) is expected to have risen at an annualised 4.6% in the second quarter, compared to an earlier estimate of 4.2% released 28 August, a report due out from the Commerce Department on Friday afternoon is forecast to show.
Just yesterday Barlays Research raised its tracking estimate for US third quarter growth to 2.8% from 2.6%.
A separate report from the University of Michigan is expected to show an increase in US consumer confidence in September. The sentiment index may have risen to 84.8 from 84.6 a month earlier, according to analysts' estimates.
BAE Systems gains, Sports Direct off
Fresnillo, Centamin, Polymetal and Randgold Resources began the morning session with slight gains as gold futures advanced in reaction to increased risk aversion on the back of geopolitical concerns.
Sports Direct is off by 4% a day after it was disclosed that executive deputy chairman Mike Ashley has essentially taken a punt on shares of Tesco, with Goldman Sachs on the other side of the trade no less, although the latter will likely have already hedged any risk to itself.
BAE Systems were likely advancing on the back of the increased geopolitical angst.
Shares in Lloyds rose 1% after announcing the successful sale of 57.5m shares in TSB Banking Group at a price of 280p per share via a placing.
Sainsbury has been downgraded by Santander to 'underweight' from 'hold'.
Slower-than-expected growth in its solutions division and challenging market conditions in its currency division have forced Security documents designer and producer De La Rue to lower its expectations for the current and next financial year. The company said it expects operating profit and underlying profit before tax for the year to be £20m lower than originally estimated.
JP Morgan has reduced its target price from 862p to 600p and downgraded the stock to underweight. Numis cut its target price to 540p downgrading from add to hold.
In other company news, ground engineering firm Keller Group has announced that Justin Atkinson, the company's chief executive (CEO), will retire from his role at the end of 2015. The group has confirmed it has already started a selection process to find a replacement for the outgoing CEO, who first joined the company in 1990.
The London Stock Exchange has obtained a take-up of 97.07% on its rights issue to finance a planned $2.7bn takeover of US index compiler Frank Russell.
Market Movers
techMARK 2,802.49 +0.09%
FTSE 100 6,640.85 +0.02%
FTSE 250 15,384.79 -0.27%
FTSE 100 - Risers
BAE Systems (BA.) 470.30p +1.62%
St James's Place (STJ) 730.00p +1.53%
Admiral Group (ADM) 1,250.00p +1.38%
Reckitt Benckiser Group (RB.) 5,305.00p +0.95%
ARM Holdings (ARM) 912.50p +0.94%
Lloyds Banking Group (LLOY) 76.91p +0.93%
British Sky Broadcasting Group (BSY) 880.50p +0.92%
International Consolidated Airlines Group SA (CDI) (IAG) 368.00p +0.77%
Next (NXT) 6,860.00p +0.73%
HSBC Holdings (HSBA) 651.10p +0.71%
FTSE 100 - Fallers
Petrofac Ltd. (PFC) 991.00p -2.94%
Sports Direct International (SPD) 619.00p -2.90%
Sainsbury (J) (SBRY) 252.70p -2.05%
Morrison (Wm) Supermarkets (MRW) 170.60p -2.01%
Imperial Tobacco Group (IMT) 2,659.00p -1.34%
Coca-Cola HBC AG (CDI) (CCH) 1,314.00p -1.05%
SABMiller (SAB) 3,383.00p -0.98%
Diageo (DGE) 1,762.50p -0.93%
Ashtead Group (AHT) 1,019.00p -0.88%
CRH (CRH) 1,392.00p -0.78%
FTSE 250 - Risers
Evraz (EVR) 126.90p +2.75%
Balfour Beatty (BBY) 225.50p +2.41%
Fisher (James) & Sons (FSJ) 1,362.00p +2.41%
Renishaw (RSW) 1,629.00p +2.32%
Supergroup (SGP) 1,114.00p +2.20%
Kazakhmys (KAZ) 271.90p +2.10%
Fidessa Group (FDSA) 2,279.00p +1.92%
PayPoint (PAY) 1,022.00p +1.79%
Polymetal International (POLY) 484.10p +1.77%
Pets at Home Group (PETS) 174.00p +1.75%
FTSE 250 - Fallers
De La Rue (DLAR) 516.50p -31.95%
Ocado Group (OCDO) 265.00p -4.54%
Hochschild Mining (HOC) 139.00p -3.41%
SIG (SHI) 167.80p -3.01%
Playtech (PTEC) 715.00p -2.92%
Daejan Holdings (DJAN) 4,900.00p -2.87%
RPC Group (RPC) 524.50p -2.78%
Tullett Prebon (TLPR) 270.60p -2.59%
Howden Joinery Group (HWDN) 334.70p -2.53%
Fenner (FENR) 318.90p -2.51%
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