FTSE ends a directionless session little changed

END-OF-DAY REPORT: Headline shares ended the session little changed, on a quiet day for corporate news, with investors prepared to sit on the sidelines, with mining heavyweights and defence contractors heading the gainers.

At the close of business, the FTSE100 was up just 4.99 points at 5,812.95 with the FTSE250 ahead 17.58 points at 11,280.96 and the FTSE Smallcaps 10.23 points better at 3,109.86.

NEW YORK

US stocks were marginally higher in late morning trade after news of a surprise narrowing of the trade deficit in October failed to overcome jitters over the strength of the dollar.

Approaching the close in London, the Dow Jones Industrial Average was up 7 points at 11,377, the S&P500 rose 2 points at 1,235 and the Nasdaq Composite added 4 points at 2,621.

LONDON MARKETS

Investors struggled for inspiration throughout the session, on a day devoid of corporate earnings news. Influential sectors such as financial and mining put out mixed signals and kept the main index close to the gain line.

Mining shares were generally positive on continuing strength in copper and precious metals prices, but with fears of the prospect of slowing growth in China remaining a concern.

Vedanta Resources jumped to the top of the leaderboard, up 70p at 2,275p, while ENRC added 27p at 965p and Kazakhmys gained 17p at 1,529p.

Anglo American was a sector headliner, up 32.5p at 3,027.5p on news it has secured a key licence for the development of its Minas-Rio iron ore project in Brazil.

Autonomy recovered 32p at 1,377p after CEO Mike Lynch was reported as saying there is upside to the current market consensus for the full year.

Drinks giant Diageo was one of the best of the day, up 11p at 1,174p on news it is in early-stage discussions to buy Turkey's Mey Icki to provide another opportunity for expansion.

Insurer Prudential rose 5p at 659p after an upgrade to overweight from equal-weight at Morgan Stanley, with the target raised to 802p up from 753p.

Defence and security contractors were high on the list, with Cobham, destined to relegation to the midcaps, up 5.9p at 209.5p, BAE Systems rallying 5.7p at 330.4p and Smiths Group 18p higher at 1,255p.

On the downside with blue chips, aero-engine maker Rolls-Royce slipped 3p at 639p on reports that the cost of the failures of its Trent 900s may top £50m.

Associated British Foods turned from hero to villain during the session after warning of the impact of higher commodity prices on Primark margins. AB Foods shares were 14p lower at 1,091p at the close, after having topped the leaderboard early on.

In the financial sphere, banking shares put in a largely negative performance, with part-nationalised Lloyds Banking Group the only one to make progress, up a modest 0.12p at 68.4p. Royal Bank of Scotland fell 0.62p at 41.69p, while Barclays edged down 3.8p at 272.2p and Standard Chartered continued to tumble, down a further 47.5p at 1,762.5p and the worst blue chip of the day.

In retail, luxury brand Burberry gave back 29p at 1,108p as bid chatter ceased.

Other notable casualties included BG Group, down 30.5p at 1,303p, plumbing group Wolseley, off 13p at 1,828p after having its target cut at Goldman Sachs, and product tester Intertek, 49p lower at 1,885p.

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