Wednesday morning market opening

Dec 9 2009 By nebusiness

THE FTSE 100 Index stuck close to its opening mark today as investors awaited news on Alistair Darling’s plans for tackling the UK’s budget deficit.

The Chancellor is also set to levy a one-off tax on the bonus pool used by banks when he delivers his Pre-Budget Report later in the session.

With investors opting to remain on the sidelines ahead of the statement, the FTSE 100 Index slipped 8 points to 5215.1 in the first hour of trading.

Despite the windfall tax threat, shares in Royal Bank of Scotland steadied after falling 8% yesterday on fears that its board will resign in a showdown over the government’s control of its remuneration strategy.

Shares were 0.4p higher at 30.9p, while Lloyds Banking Group added 0.6p to 54.4p and HSBC rose 3.2p to 698.3p. The mood was helped by a positive trading update from Asian-facing bank Standard Chartered, which said it expected record levels of income and operating profits due to wholesale banking.

In the FTSE 250 Index, spread betting firm IG Group set the pace after it flagged up strong first half profits. Shares were 12.8p higher at 352.7p.

It was followed by transport group Stagecoach, which lifted 4.5p to 154.4p after first half profits came in ahead of City hopes.