FTSE 100 drops 0.5%

The FTSE 100 fell on opening after yesterday's stagnation putting the index down 0.55 per cent.

At 9:35 BST the index stood at 5381.60 – down 30 points – following falls last night of 1.78 per cent on Wall Street for the Dow Jones.

In London, the first hours of Friday saw a switch in fortune for miners.

Ferrexpo, Vedanta Resources and Kazakhmys all dropped between 4.42 per cent and 3.74 per cent.

British Energy dropped 5.07 per cent after the firm revealed takeover plans were on the rocks.

The greatest rises were seen by retailer Kingfisher – up 3.55 per cent – after it announced it was selling DIY store Castorama Italy for £440 million.

Insurance giant Old Mutual rose 2.99 per cent, BAE Systems was up 2.28 per cent, HBOS climbed 2.24 per cent and Friends Provident gained 2.01 per cent.

Sterling was down against the dollar and the euro making £1 worth $1.97760 and €1.27070. €1 is now $0.78704.