London market remains calm


Trading on the London market got off to a gentle start yesterday (Weds) as the City took stock of events after a volatile few days.

The calm mood was helped by events on Wall Street overnight, with the Dow Jones Industrial Average closing fractionally lower on its second day of business since reopening in the wake of the terror attacks.

After an hour's trading, the FTSE 100 Index of leading shares was ahead 15.0 points at 4863.7.

Plane maker Boeing's announcement that it may have to cut 30,000 jobs was one of the major talking points in the City as a number of firms continued to suffer in the aftermath of last week's atrocities.

Fears that engine maker Rolls-Royce could be hit by Boeing scaling back delivery targets left Rolls 2 per cent lower, down 2p at 133p.

And British Airways' recent decline in the wake of disruption to the airline industry showed no signs of abating as shares fell another 4 per cent, or 7p, to 167p.

Most telecom stocks were enjoying a strong start to the session, with Vodafone ahead 5p at 144p, Colt Telecom 31/2p stronger at 152p, and Telewest up 1p at 34p.

Telecoms equipment group Marconi also recovered from last night's record low, up a penny at 27p.

But Cable & Wireless fell back 8 per cent - 24p to 289p after warning revenues in its Global division would be 5 per cent lower during the first half of the year.