London’s leading shares index closed above the 5,700 mark for the first time in nearly three months today but global growth fears continued to spook investors.
The FTSE 100 Index closed 8.4 points higher at 5,702.4 after strong US manufacturing figures gave hope that the world’s biggest economy was making progress.
Banking stocks reversed earlier losses after US giant Goldman Sachs posted better-than-expected 47% drop in net earnings to £2.8billion.
Lloyds Banking Group was up 0.1p at 29.6p and Barclays rose 1.9p to 201.1p. Royal Bank of Scotland, which has enjoyed a positive run in recent sessions, was flat at 24.8p.
Hedge fund giant Man Group was among the biggest risers after it said it would cut more jobs as the size of its funds declined amid market volatility. Shares rose 7.3p to 114.4p.
In a thin session for corporate news, pubs chain JD Wetherspoon was flat after it offset like-for-like sales growth of 3.6% for the second quarter with a warning that profit margins remained under pressure. The stock was broadly level at 417p.
The biggest Footsie risers included Essar Energy up 9.2p at 136.2p, Burberry up 43p at £13.44 and Carnival ahead 62p at £19.71.
The biggest Footsie fallers were Imperial Tobacco down 114p at £22.46, Tullow Oil off 61p at £13.94, Weir Group down 75p at £20.25 and RSA Insurance off 2.1p at 107p.
Elaine McLachlan, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted that risers included STV Group up 12.3% at 96.5p, technology hardware and equipment firm, Wolfson Microelectronics gaining 5.8% to 150p and Aberdeen Asset Management rising 5.3% to 229.4p.
Fallers included oil exploration and development company Xcite Energy down 2.5% at 89.63p.