FTSE rises as metal prices fall

FTSE rises as metal prices fall

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The FTSE 100 Index edged up five points to 5813

The London market fluctuated as bid speculation lifted some blue chip stocks while the stronger dollar weighed heavily on miners.

In Wall Street, the Dow Jones Industrial Average rose by 0.2% with positive corporate news moving the market.

The FTSE 100 Index edged up five points to 5813, as the strong greenback saw energy and metal prices slide, sending heavily-weighted miners lower.

Kazakhmys was down 10p at 1544p, Rio Tinto off 22p at 4483p and Eurasian Natural Resources fell 2p to 942.5p.

Investors on both sides of the Atlantic were still digesting a tax cut proposal backed by President Barack Obama, which could boost economic growth but also widen the budget deficit.

Traders piled into fashion house Burberry as bid rumours resurfaced following Tuesday’s British Fashion Awards, with US designer Coach mooted as a potential interested party. Shares were up nearly 4% at 1173p.

There was similar interest in medical devices firm Smith & Nephew, which sat more than 7% higher at the top of the risers board, after reports cited an 800p per share cash offer from a US consortium of private equity players. But investors were not impressed by ongoing in-fighting between shareholders at Lakeside owner Capital Shopping Centres.

The group shot to the top of the fallers board after takeover suitor and major investor Simon Property said it will vote against Capital’s planned acquisition of Manchester’s Trafford Centre. It added it was still interested in buying Capital, but threatened to drop any potential offer unless it was allowed to carry out due diligence. Shares in Capital fell 5%, or 20.7p to 387.3p.

Corporate earnings provided the focus in the FTSE 250, with Comet parent Kesa Electricals dropping 0.1p to 171.8p after it reported a three-fold increase in UK half-year losses as second quarter sales slumped 10%.

Comet saw losses widen to 6.4 million euro (£5.4 million) in the six months to October 31 up from 1.8 million euro (£1.5 million) a year ago.

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