FTSE pushes up despite retail sector woes

A raft of corporate results today has the potential to move the FTSE in either direction, but it is picking an upward path this morning.

Mixed UK economic data has clouded the picture further. The GfK consumer confidence index has stalled at February’s low level on households’ concerns over their finances.

Nationwide, however, said house prices rose by 0.5 per cent in March and 0.7 per cent in February, contradicting economists’ forecasts for a continued fall.

Miner Vedanta Resources is high on the risers board again, up 2.3 per cent as it moves closer to its acquisition of Indian oil and gas operator Cairn India.

Royal Dutch Shell has also gained more than one per cent after announcing it has been awarded a permit to drill in the Gulf of Mexico.

BHP Billiton and engineers Amec and IMI have been boosted in sympathy.

TUI Travel is 1.7 per cent higher after saying its trading in the past six months has been “satisfactory”.

But baby retailer Mothercare has added to the retail sector’s woes, losing 10.6 per cent in early trading as its fourth-quarter sales fell 2.4 per cent and it said profits were under pressure.

On the FTSE 100, fashion retailer Next and Kingfisher, Europe’s biggest home improvement group, have each fallen 1.1 per cent.

Vodafone is also down for a second day after saying it is to pay $5bn (£3.1bn) to buy out its Indian joint venture partner Essar Group.

London Stock Exchange and interdealer broker Icap have both provided bullish trading updates.

But amid growing unease over the impact of Middle East unrest on the market, Omani company Renaissance has pulled the London flotation of $1bn (£620m) oilfield services operator Topaz Energy.

Markets may also be wary ahead of the results from Ireland’s latest bank stress tests this afternoon, which are expected to show the banks needing huge recapitalisation.

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