FTSE pegged back by miners

The FTSE 100 edged down in early trading today as disappointing jobs data out of the US on Friday continued to cast a shadow over global markets.

The 80,000 increase in payrolls in June was slightly below market expectations for an increase of about 90,000 and was not enough to reduce the unemployment rate, which remained at 8.2 per cent.

Meanwhile China's annual consumer inflation cooled more than expected to 2.2 per cent in June, from May's three per cent, new data showed.

The country's central bank unexpectedly cut benchmark interest rates last week for the second time in a month in a bid to bolster growth.

Miners struggled on London's blue chip index as fears over global growth and a dip in the price of copper took their toll. The sector was also cautious ahead of the start of the US second-quarter corporate earnings season which kicks-off with numbers from aluminium firm Alcoa after the London close today.

Anglo American was off by 1.4 per cent while steelmaker Evraz was dented by the same amount.

Xstrata, which is in merger talks with commodities giant Glencore, was down by 1.3 per cent.

iPhone chipmaker Arm Holdings was the heaviest faller, down 1.6 per cent, while Primark owner AB Foods nudged down by 1.4 per cent.

There were few significant risers with publisher Reed Elsevier, up 0.8 per cent, the highest climber. Vedanta, up 0.3 per cent, was the pick of the miners.

Banks RBS and Standard Chartered edged up by 0.5 per cent. That contrasted with Lloyds which lost just over one per cent and Barclays eased off by 0.7 per cent as the LIBOR scandal continues to dent its price.

And today deputy Bank of England governor Paul Tucker will face a grilling from MPs over the unfolding crisis.

On the FTSE all-share recruiter Michael Page dipped by 4.4 per cent after reporting a fall in profit.

JJB Sports plunged by almost 30 per cent after it announced a sales fall triggered by poor weather.

In Asia the Nikkei closed down 1.3 per cent and the Hang Seng 1.8 per cent.