FTSE 100 slides in early trading

The FTSE 100 index slipped in early trading after last night’s rally, weighed down by energy and mining stocks.

By 09:11 GMT, the index was trading 4.61 points below Monday’s close, at 4,208.79.

Banking stocks continued to rise on the index, with Royal Bank of Scotland recovering 15.17 per cent, Barclays up 11.5 per cent and Lloyds TSB up 9.82 per cent.

Insurer Friends Provident also benefited from an upbeat trading statement this morning, with shares up 6.13 per cent.

However, the mining and energy sector, which accounts for around 20 per cent of the index, fell on lower prices.

Xstrata shares fell 3.54 per cent, Randgold Resources was down 3.12 per cent and Royal Dutch Shell fell 1.12 per cent.

Plumbing supplier Wolseley led the decline, after confirming a fall in profits for the year. Shares fell 5.22 per cent in early trading.

In the US, the Dow Jones rose 0.48 per cent after Pfizer said it would buy pharma rival Wyeth, while in Japan the Nikkei 225 soared 4.93 per cent on a government rescue plan.