Around the World: London

UK STOCKS traded sideways yesterday as investors sat it out after Tuesday's sharp fall. A firm opening on Wall Street did little to improve sentiment, and the FTSE 100 ended 8.8 points down at 6,311. Smaller indices outperformed the blue-chips thanks to a flurry of takeover activity. The FTSE 250 ended 9.8 higher at 5,763.4 and the small cap closed 12.5 up at 2,485.5.

Rumours of a tie-up between Marks & Spencer and Tesco to create a retail group with a pounds 24bn market value dominated the day.

Market report, page 21