Headline shares were modestly lower at midday, after heavy falls in global markets on continued gloom over European debt, with miners fading on growth concerns and banks concerned over levies.
At high noon, the FTSE100 was down 26.82 points at 5,099.18 with the FTSE250 off 71.63 points at 9,528.22 and the FTSE Smallcaps 15.51 points lower at 2,737.54. US stock futures suggest a negative start on continuing concerns over the euro and the pace of recovery in the US. Dow Jones Industrial Average futures fell 12 points at 9,934, S&P500 futures lost half a point at 1,065 and Nasdaq 100 futures were flat at 1,834.

LONDON MARKETS

Concerns over slowing global economic growth made a major impact in London, although the FTSE came off lows by midday, with commodity issues particularly weak as metals and oil prices fell. Oil major BP (LON:BP.) was the biggest blue chip gainer at midday, adding 11.4p at 444.75p, on news of more success in its quest to stem the flow of oil to the US gulf coast.  Peers were weaker as crude prices remained around $71 a barrel, with Shell down 13p at 1,727p and BG Group (LON:BG.) 13.5p lighter at 1,055.5p.

The mining sector provided another rare blue chip gainer as Randgold Resources (LON:RRS) ticked up 50p at 5,950p as gold firmed at $1,214 an ounce, supported by its defensive qualities.

The remainder of the sector was firmly lower, with Kazakhmys (LON:KAZ) the biggest mainstream faller, dropping 19p at 1,100p. Rio Tinto (LON:RIO) lost 20.5p at 3,095.5p, Xstrata Plc (LON:XTA) fell 14.4p at 936.8p and Vedanta Resources (LON:VED) retreated 34p at 2,141p.

Financial issues were impacted by the deepening European debt crisis, but banks clambered off their lows to show mixed at midday, with Royal Bank Of Scotland Group Plc (LON:RBS) edging up 0.22p at 43.71p, Barclays (LON:BARC) 0.1p better at 288.7p and HSBC gaining 3.3p at 633.4p. In contrast, Lloyds fell 0.39p at 55.05p, hit by reports that shareholders plan to sue over misleading advice during the HBOS takeover, and Standard Chartered (LON:STAN) slipped 5p at 1,616.5p.

Insurer Prudential (LON:PRU) came out fighting ahead of its potentially stormy AGM, reporting strong group-wide sales growth in the first five months of the year. Total…

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