FTSE

The FTSE was down in early trading at 5311.91, representing a drop of 2.04 points (0.04%), ahead of US GDP data.

The FTSE edged slightly higher this morning, buoyed by upbeat earnings announcements from AstraZeneca and BAE Systems.

Banks pushed the FTSE higher by 0.55% to 5380.35 on news the Basel Committee proposed to water down its capital and liquidity reform package.

One of the most frequent assertions by fund managers across the UK investment press over the last year has been that, while the domestic economy may be set for anaemic growth, UK companies are set to fare a lot better.

Neil Gregson is cutting exposure to gold mining stocks in the City Natural Resources High Yield trust as he sees better value in base metal miners.

ASSET ALLOCATION

The FTSE 100 regained some of the ground it lost today in late trading, but still closed down 0.8% lower at 5,211 points.

Revised US economic forecasts and disappointing GDP figures from China hit European markets in early trading on Thursday, with the FTSE falling 0.6%.

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

The FTSE opened higher at 5123.14, up 17.69 points (0.35%), helped by mining companies rebounding from recent losses.