FTSE rises but retail worries continue

In London, markets rose slightly in early trading but retailers remained under pressure from a slow Christmas period and the FTSE 100 was up 4.5 points (0.07%) to 6,282.3.

DSG International led the pack, up 3.5 points (3.5%) to 103.5p, while Northern Rock added 2.9 points (3.17%) to 94.3p after the Government extended its deposit guarantees.

Alliance & Leicester shares dropped 16.5 points (2.51%) as the banking crisis continued to take its toll on securitized lenders. Rexam shares continued to fall following a downgrade from Citigroup.

On Wall Street, shares plummeted as investors expressed concern about the global economy and the Dow Jones dropped 172.65 points (1.29%) to 13,167.2, with just two stocks making gains.

Wal-Mart shares added 0.2 (0.42%) to 47.83, while Honeywell International added 0.22 (0.37%) to 60.20.

Alcoa shares dropped 1.29 (3.67%) to 33.90 over fears that an economic downturn will hit manufacturing, and Caterpillar lost 2.23 (3.04%) to 71.16 as US construction showed signs of weakening.

In Tokyo, stocks fell as exporters worried about the outlook for the US economy and the Nikkei 225 dropped 41.93 (0.3%) to 15,207.86.

Nintendo shares led the decline, down 2,300 yen (3.6%) to 61,900, while Canon dropped 100 yen (1.8%) to 5,430.

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