Monday Morning Market Update: Shares remain depressed

Stock markets present a dull picture after Wall Street's third-consecutive fall last Friday on the JC Penney profits warning that raised concerns about slowing consumer spending and persistent worries about credit-related problems continued to unsettle financial stocks.

By 8.45 am the FTSE 100 index was down 78 ppoints at 5,615 and the Mid-250 index 116 points weaker at 9,845,

In Europe the CAC-40 index in France lost 45 points and the German DAX 30 points.

Friends Provident was an isolated firm spot at 124.6p, up 4.5p as it said the latest 150p-a-share approach from JC Flowers significantly undervalued the company and did not represent a basis for discussion.

AstraZeneca also resisted the trend at £18.82, up 34p, as it stopped its Crestor drug trial early after 'unequivocal' evidence of benefit.

Cairn Energy succumbed to profit-taking at £27.85, down 17p, following its trading update and Vodafone tumbled 8p to 149p after a Morgan Stanley rating downgrade

Elsewhere favourable news benefited Mwana Africa at 41.5p,, MyHome International 18.25p, YouGov 161p, Eros International 307.5p and Alexon 94.75p, up 1.5p to 8.5p and weekend press tips boosted Severfield-Rowen 21p to 305p  and Connaught, 7.5p better at 368.25p

A Deutsche Bank rating downgrade clipped 9p from Michael Page at 303p.

Housebuilders remained weak on the tightening in mortgage markets and further evidence of falling house prices.. Barratt Developments dipped 11.5p to 399.25p and Bellway 25.5p to 848.5p.