FTSE recovers after global sell-off

The FTSE rose slightly in early trading to 4823.61, up 17.86 points (0.37%), after a late rally on Wall Street.

Global markets plunged yesterday afternoon after disappointing US manufacturing and housing data added to growing concerns of stuttering global growth.

In London this morning, miners rose on news Australia had watered down its mining tax. Tullow Oil was the biggest winner, up 30.50 points (3.08%) to £10.22, while Xstrata was up 16.90 points (2%) to 862p.

However, BP was the biggest loser at 324p, down 3.45 points (1.05%), as the beleaguered oil giant continued to suffer the fallout from the Gulf of Mexico spill.

Water company Severn Trent also performed poorly, dropping 0.58% to £12.09, and mobile operator Vodaphone Group fell 0.72% to 137p after Goldman Sachs cut its earnings estimates.

The US market rallied in late trading but the Dow Jones still closed down 41.49 points (0.42%) to 9732.53 as weak data dragged on the index.

Financials was the weakest sector, with Bank of America suffering the biggest loss down 0.35 points (2.44%) to $14.02.

There was more positive news from Asia as the Nikkei rose 0.13% on Friday to 9203.71 after five straight days of falls.