FTSE 100 falls 0.5%

The FTSE 100 was down 0.5 per cent in the early hours of trading, maintaining some stability.

The index recouped initial losses made on opening but failed to climb over the closing price last night standing at 5,336.30 – down 26 points – at 9:50 BST.

In a switch from yesterday, banking fell but resources rose.

BG Group rose 3.18 per cent, while miners BHP Billiton and Xstrata climbed 2.47 per cent and 2.24 per cent respectively.

Cairn Energy was up 1.83 per cent and platinum producer Johnson Matthey gained 1.78 per cent.

Meanwhile financials suffered.

Legal & General dropped 6.05 per cent, Standard Chartered fell 5.26 per cent, Lloyds TSB slid 5.18 per cent and Barclays was down 5.03 per cent.

Marks & Spencer fell 5.68 per cent.