Dow Jones

Shares on the FTSE 100 index suffered a setback today largely because the continued pressure on oil prices is beginning to take its toll on firms such as British Airways.

In the UK this morning the FTSE 100 index is trading down led by mortgage companies, HBOS and Northern Rock.

There was talk in the market of a takeover at Prudential by HBOS, however, the banking group quickly quashed any such suggestions to leave the FTSE 100 almost flat at close of business.

The FTSE 100 Index has gained about 13 points to 4,630 this morning, helped by mining stocks.

The benchmark FTSE 100 Index added 1.9 points, to 4618.30, led by Scottish & Newcastle after Merrill Lynch raised its recommendation on shares to ‘neutral' from' ‘sell'.

UK stocks have recovered slightly from this morning, however, the benchmark FTSE 100 is trading down 38.80 points at 4616.40 points late this afternoon.

UK benchmark the FTSE 100 is trading about 41 points down near 4,613 points despite a strong surge by Scottish & Newcastle.

Rising oil prices and a further drop in the insurance sector has contributed to poor early trade in the UK markets this morning.

UK stocks are trading tamely down this morning, paced by Royal & Sun Alliance, which has forced the FTSE 100 down by about 4 points to 4,625.

UK stocks closed down this afternoon with shares in BA losing out as crude oil traded near a record high, increasing concern about rising energy costs.