FTSE LIVE: London shares lower as banks and energy firms fall; Aggreko up

15:00: The FTSE 100 Index slipped 0.1 per cent to 6710, retreating from the highest closing level since May reached on Friday as banks and oil firms took a hit.
Barclays shares fell 2.2 per cent (6p lower to 261p) while Lloyds Banking Group fell 80.37p, or 1.37 per cent, to 79.27p.
Energy firms were also on decline, with BG Group and BP shares down 1.5 per cent and 0.5 per cent respectively.

Riser: Mobile power and temperature control supplier Aggreko topped the FTSE 100 this morning

Meanwhile, US stocks opened flat as investors found few reasons to keep pushing shares higher after the S&P 500 climbed to record highs on Federal Reserve stimulus and stronger-than-expected earnings.


The Dow Jones industrial average fell 13.62 points or 0.09 percent, to 15,556.66, the S&P 500 gained 0.15 point or 0.01 percent, to 1,759.92 and the Nasdaq dropped 0.584 point, or 0.01 percent, to 3,942.777.
12:00:
London shares are just 1.86 points down at 6719.48, but earlier leapt near a five-month high on expectations that US policymakers will maintain their level of support for the world's biggest economy.
The current bond buying programme of $85billion (£52billion) a month is likely to remain in place, although Wednesday's Federal Reserve meeting will be closely watched for clues about when tapering will start.

 

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A strong finish to trading in New York on Friday propped up markets at the start of the new trading week as Asian markets rose and the FTSE 100 Index clung to recent gains.
The performance in London consolidated the gains seen over previous sessions, with the top flight index at its best level since the end of May.
Alpari market analyst Craig Erlam said: 'A large majority of investors were convinced that the Fed would start scaling back its asset purchases in September, something the Fed opted against as the economic data did not support it.
'Since then, the US has narrowly avoided default, while its government shutdown for almost three weeks and the economic data hasn't improved. In fact, it's probably deteriorated slightly, so the Fed can't possibly consider tapering this month.'

 

Among the risers in London, outsourcing firm G4S climbed 1 per cent after it confirmed recent market speculation that it had received an offer worth £1.5billion for its cash transportation business. G4S called the approach from private equity firm Charterhouse as 'highly opportunistic' but the hope of a fresh offer led shares 1.5p higher at 260p.
Generator firm Aggreko achieved the biggest rise in the FTSE 100 after it said its power projects arm - which builds and runs temporary power plants - has quoted for a record level of business over the past six months.
Shares in the group have suffered over the past year but Aggreko reassured investors, saying it is on course to meet pre-tax profits expectations for 2013. The Glasgow-based group surged 5 per cent or 81.5p to 1598.5p.
Outside the top flight, shares in car dealership Pendragon jumped 4 per cent after it said full-year results would be 'materially ahead' of expectations.
The owner of Evans Halshaw and Stratstone said sales were up by a fifth in the third quarter of the year, amid strong signs of recovery on UK forecourts.
Numis Securities upgraded its full-year profits estimate from £40million to £44million, having previously pencilled in a £1million decline in second half profitability year-on-year.
10:30:
The UK blue-chip index is 4.08 points higher at 6,725.42.
IG chief market strategist David Jones said: 'It has been an unsurprisingly quiet session so far today with the FTSE barely able to muster a 20-point range. The pre-emptive action taken by various train companies ahead of the expected stormy weather has meant a somewhat deserted City of London this morning, and this is being reflected in volumes so far.'
Mike van Dulken, head of research at Accendo Markets, said: 'For now we remain cautiously optimistic of further gains this week as the Fed meeting confirms a QE3 taper delay, although we do expect today to be a quiet FTSE session with light trading volumes on account of stormy UK weather hindering city-workers' efforts to make it to their desks.'

9:00:
The FTSE 100 index opened 0.2 per cent higher at 6,734.44, and is now trading 8.61 points higher, or 0.13 per cent, at 6729.95 supported by expectations that the US Federal Reserve will not start trimming its bond buying programme until the first quarter of 2014 because of recent weak data.
Friday's numbers showed orders for US manufactured goods fell in September, while consumer sentiment fell in October.
Mobile power and temperature control supplier Aggreko topped the FTSE 100 this morning, rising 3.3 per cent, after saying it expects group profit before tax will be in line with market expectations.
Security outfit G4S ticked up 2.9p at 261.4p on news it has rejected a non-binding, indicative and conditional offer of £1.55billion for its cash solutions business from Charterhouse Capital Partners, with investors hoping for a higher bid to emerge.

 

Infrastructure group Balfour Beatty edged up 0.95p to 286.15p on announcing it has won two UK coastal defence contracts totalling £73million for Blackpool Council and Wyre Council.
AstraZeneca added 35.5p at 3,284p when Bank of America Merrill Lynch upgraded the stock to neutral from underperform.
Commercial software provider Sage Group advanced 3.15p to 335.05p when Jefferies International upgraded the stock to buy from hold and hiked its target price to 380p from 320p.
Energy groups were on offer after speculation that results due later this week will show sharp falls in profit. BG Group dropped 8.75p at 1,245.75p, BP fell 1.1p to 450.05p and Shell was 3.5p lower at 2,234p.
Explorer Tullow Oil was the worst of the blue chips, sinking 16p to 962.5p on announcing it has temporarily suspended operations in Northern Kenya due to labour unrest.