Wednesday Morning Market Update: Shares off their early best

Share prices cling to the bulk of their early gains, although a slightly firmer crude price and a sharp drop in profits from Lloyds TSB due to further writedowns has curbed the initial enthusiasm that followed Wall Street's strong rebound.

By 9.30am the FTSE 100 index was up 61 points at 5,381 and the Mid-250 index was 90 points higher at 8,820.  

In Europe the German DAX was trading 38 points firmer.

Lloyds TSB fell 13p to 308p as Goldman Sachs reiterated its sell advice after the 70% profits setback, with HBOS off 3.25p to 269.5p in sympathy.

Others who fail to join in the generally brighter mood were Drax Group at 712.5p, Smiths Group £10.33, Sainsbury 321p, Marks & Spencer 259.5p and Reckitt Benckiser £26.5p, between 3.5p and 26p lower.

Upbeat trading news continued to reflect well on Admiral at 892.5p, Aviva 490.75p and Rexam 364p, up 15.5p to 21.25p.

Mining shares remained buoyant under the lead of Ferrexpo at 281.75p and Vedanta Resources £19.95, up 17.25p and 107p.

Broker upgrades in the wake of the Iberia merger talks lifted British Airways 9.25p to 257.75p and AstratZeneca rose 50p to £23.64 in the wake of a positive note from Panmure Gordon.

Next softened 3p to £10.82p in response to a 'very cautious' outlook and 2% fall in total sales.  

A UBS rating downgrade trimmed 1.5p from Dimension Data at 48.75p and cautious comment on yesterday's figures unsettled Inchcape at 250.25p, down 8.5p.

Travis Perkins shed 9.5p to 585p following a 3% first-half profits shortfall and cautious statement and a sell recommendation from Goldman Sachs contributed to a 12.5p fall in Bellway to 503p.

Talk of a rival bid from Eurasian Natural Resources boosted Imperial Energy 52p to £10.10 and Headlam advanced 12.25p to 301.25p has Goldman Sachs upgraded the stock to neutral from sell.