Thursday Morning Market: Easier trend as trading statements dominate

UK markets present a mixed picture as dealers study a hefty clutch of corporate trading statement, although sentiment is underpinned by another positive session in New York in response to better than expected jobs data and government support for the housing market.

By 8.45am the FTSE 100 index was four points down at 5,417 and the Mid-250 index was 36 points adrift at 8,851.

In Europe the CAC-40 in France opened 0.34% firmer and the German DAX was up eight points.

HBOS bounced back 18p to 290p following smaller-than-expected writedowns and an upbeat outlook for the second half, heading the list of major gainers.

But comment on yesterday's 70% profits shortfall knocked another 10p from Lloyds TSB at 295.75p.

A rally in the crude price prompted fresh support for oil shares where Royal Dutch Shell advanced 37p to £19.74 in spite of disappointing second-quarter results.

Record profits from Anglo American lifted the share price 16p to £29.26 in a firmer mining sector.

Favourable trading updates underpinned Centrica at 324p, Reed Elsevier 553p and BAT £18.78, between 5.75p and 12p firmer.

In contrast positive statements failed to help BT Group at 176.4p, Carphone Warehouse 187.2p, BSkyB 254.5p, Unilever £14.31 and Prudential 524.5p , down 6.10p to 78p.

Among the smaller groups Xhchanging at 241p, ITE 172.25p amd RPS Group 303.75p reflected satisfactory news with gains of 3.75p to 6.5p and Croda International jumped another 20.5p to 707.5p on further consideration of yesterday's figures.

Confirmation of the asset swap did little for Mitchells & Butlers, down 9.25p to 248.25p or Whitbread, 19p easier at £11.18, and good results failed to support Laird Group at 314p, down 23p, or Greggs, 139p lower at £35.82.

Silence Therapeutics improved 6p to 44.25p on receiving a patent allowance in the US for its core RNAI patent, but Topps Tiles dipped 5.5p to 43.25p in the wake of a 7.7% decline in like-for-like sales over the past 17 weeks.