Morning Markets: Mood cautious amid fears of growth slowdown

Shares in London open cautiously ahead of UK GDP figures which are expected to show growth slowing.

By 8.45am the FTSE 100 index was 17 points lower at 5,736 and the Mid-250 index nine points adrift at 10,987.

Reckitt Benckiser was an early riser at £34.68, up 50p, as all antitrust conditions were met for the SSL International acquisition. Goldman Sachs has upgraded the stock to buy form neutral, raising its target price to £43 from £35.50 and adding it to its Conviction Buy List.

In stark contrast Cairn Energy slumped 20p to 392p following news of a dry well in Greenland, prompting Evo Securities to cut its target price to 501p from 542p.

ARM Holdings saw profit-taking after figures much as expected, losing 12p to 377p., while a cautious review of the insurance sector from Bank of America saw Standard Life at 224p, Legal and General 101.2p and Old Mutual 133.4p slip 1p to 3.4p.

Pearson recovered 7p to 954.5p on further consideration of yesterday's trading update and yesterday's contract news boosted Aggreko a further 6p to £16.91.

A positive trading statement from Go-Ahead Group pleased the analysts, lifting the share price 39p to £13.12.

Brit Insurance jumped 22p to £10.43 after confirming the recommended takeover by private equity groups Apollo and CVC.

Favourable production figures underpinned Aquarius Platinum at 382p, up 6p, but Fidessa tumbled 41p to £16.81 after warning of weaker growth rates than last year.

An RBS rating downgrade overshadowed WS Atkins at 769p, down 20p and N Brown shed 5.5p to 295p in the wake of a cautious note from HSBC.

Among the smaller companies SmartFocus rose 1.25p to 17.49p after an upbeat profits forecast and Stratex International hardened 0.3750p to 5.451p after confirming new gold mineralisation at Hasancelebi.

Chamberlin added 3p to 3.82p on winning £1.4 million in orders, but profit warnings knocked 23.5p from Bango at 144p, 16p from Brulines at 104p and 3.5p from Savile Group at 27.2p.