FTSE makes modest gains

At its close, the FTSE 100 index was 28.7 points higher at 5,626.1, well below the late morning peak of 5,665.7. Royal & Sun Alliance helped lead gains, advancing 3.5p higher to 126.5p after news it will shed 1,550 jobs as part of a plan to cut its annual costs by £130m over the next two years. Other insurers followed Royal & Sun higher, helped by the firmer equity market trend, with Prudential gaining 17.5p at 566p, Aviva adding 19.5p at 744p, and Friends Provident up 4.5p at 174.75p. In the US stock have fallen on concerns reports this week may show higher interest rates are taking ...