Markets update: Dow opens in the red but FTSE stable

The Dow Jones has opened trading in negative territory with yesterday’s surge petering out as cautious investors look to keep hold of profits ahead of the long weekend.

As at 16.00 GMT, the Dow was down 0.65%, or 66 points to 10192, bringing to an end a turbulent month of trading as ongoing euro debt concerns weighed heavily on investor sentiment.

The index had risen 500 points since hitting a low of 9,756 on Tuesday.

A report on personal spending in the US also served to temper yesterday's buoyant mood as investors recovered a sense of calm.

Procter & Gamble lead the risers, up 0.87%, followed by Merck & Co (up 0.27%), Coca-Cola (up 0.25%) and McDonalds (up 0.15%).

Meanwhile, the FTSE is down 0.03%, or 1.73 points, to 5196 as two days of sharp gains came to an end. The index had been up marginally for much of the day's trading and its slip into the red could be attributed to the Dow opening in negative territory.

But the index's relatively stable showing reflects the recent easing of fears over euozone debt problems.

Retailers and utilities are the best performers, cancelling out weak financials and miners. Whitbread leads the pack, up 3.04%, with Aggreko up 2.92%.

Severn Trent, after reporting a sharp rise in profits in the year to March and increasing its dividend, is up 2.85%, amongst the day's winners.