Morning Market: BP rebound after offering confidence in the future of the company

BP rebound 20p to 356.89p after setting aside cash for the oil-spill clean-up fund and suspending dividends for the rest of the year, offering some much-needed confidence in the future of the company.

Markets generally make a flat start following an uneventful session in New York overnight.

By 8.30am the FTSE 100 index was up six points at 5,243 and the Mid-250 index was 11 points easier at 9,853.

The sweeping regulatory changes by the chancellor, bringing more power to the Bank of England, was well received by the banking sectors.

Royal Bank of Scotland hardened 0.81p to 46p following the sale of its retail banking assets in the United Arab Emirates. and Lloyds added 0.66p to 56.29p.

A Deutsche Bank rating upgrade supported Johnson Matthey at £15.96, up 22p and a positive note from Morgan Stanley underpinned Wolseley at £15.69p, up 10p.

Reckitt Benckiser rose 21p to £33, helped by a rating upgrade from RBS, but a Nomura downgrade overshadowed Petrofac at £12.58, down 29p.

Miners succumbed to profit-taking after recent strength with Fresnillo at £10.32, Xstrata £10.18 and Kakakhmys £11.75 around 2% lower.

Yesterday's upbeat trading statement lifted Filtrona another 3p to 225p, but Game Group slipped 6p to 82p despite a slowdown in sales decline and the appointment of a new chief executive.

A JP Morgan rating downgrade contributed to a fall of 4p to 131.6p in Colt Group, but a positive review from Bernstein strengthened SABMiller at £20.07, up 6p.