FTSE flat early as commodities offset weak pharmas
FTSE gains as metals spur minersInvestors are likely to shift their focus to U.S. durable goods data for July, due at 1:30 p.m. British time, for a further gauge on the health of the world's largest economy.
The Federal Deposit Insurance Corp said 117 U.S. banks were on its troubled banks list at the end of the second quarter, up from 90 after the first three months of the year.
In the UK, banks were firmer with Barclays, HSBC, HBOS and Standard Chartered all higher.
Royal Bank of Scotland advanced 0.9 percent. The bank appointed three new directors in a long-awaited board change it hopes will ease shareholder concerns over governance that surfaced after its 12 billion pound cash call.
TAYLOR WIMPEY FALLS
Housebuilder Taylor Wimpey slumped 12 percent after the mid-cap firm reported a sharp fall in first-half profit and said it was scrapping its interim dividend due to challenging market conditions in the UK, U.S. and Spain.
Other housebuilders also took a beating, with Persimmon shedding 2.7 percent, Bovis Homes losing 3.9 percent and Barratt Developments dropping 2 percent.
Drugmakers also suffered as traders said investors moved away from the sector, which has been the best performer in Europe so far this year. GlaxoSmithKline lost 1.3 percent and AstraZeneca dipped 0.8 percent.
Mid-cap Taylor Nelson Sofres slipped 1.7 percent after Germany's GfK said it had given up its attempt on a takeover offer. The UK market research firm reported underlying revenue growth of 5.1 percent for the first half.
Liberty International, Capita Group, InterContinental Hotels and Admiral Group fell after going ex-dividend.
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