Market Update: FTSE drifts into red after uncertain start

The FTSE 100 index of leading shares has dropped more than half a percentage point this afternoon following a shaky start in trading.

At 12.:10am, the index fell 0.73% or 36.55 points to 5234.47. In a volatile morning, the FTSE opened sharply higher earlier, but then dipped within minutes. This afternoon's losses come despite positive UK unemployment figures for June which show a decline in the number of people claiming jobless benefits. However the figures were offset by a negative report from Nationwide building society which suggests consumer morale fell to its gloomiest level in a year in June. The FTSE had been expected to climb higher in early dealings as US results continue to impress following the sta...