Dow Jones

Stock markets in London had a better day and only a handful of firms saw their share prices lower by close of business, after Bank of England chief Mervyn King announced he is prepared to act early to keep inflation in check.

The retirement of 3i's chief executive at 50 and the raising of its three billion euro takeover fund seems to be driving trading on the London Stock Exchange this morning.

The benchmark FTSE 100 is currently up about 12 points at 4,330 after UK stocks started on a positive note.

Having suffered a dismal day of trading yesterday along with other indices across Europe, the FTSE 100 index failed to make any ground by close of business this afternoon and moved a fraction closer to the 4300 mark.

The UK stockmarket started this morning on a downward trend, echoing similar losses on Wall Street at the end of last week and in Asia earlier today.

After such a dismal day of losses yesterday, the main excitement in the stock markets this afternoon was news of a deal brokered between the British government, BAE Systems and the Indian government to sell jets.

The FTSE has managed to pull back a fraction this morning from yesterday's tumble, as ratings upgrades for MMO2, Lloyds TSB and Royal & SunAlliance lift their share performance.

Oil giant Shell Transport and Trading dragged the FTSE 100 down under 4400 mark by closing of trading today, after the oil firm admitted it had, for the second time this year, miscalculated its 2003 reserves.

The FTSE 100 index is currently down about 1 point to 4,428 after the UK stockmarket commenced trading on a mixed note.

The FTSE 100 is currently up about six points to 4,419 after Compass Group and InterContinental Hotels Group lifted trading.