Morning Markets: Pru's good news buoys FTSE

Prudential's 1.5% rise in early trading, following better than expected first-half profits, helped the FTSE edge 0.3% higher to 5257.79 points.

However, the rise only claws back a fraction of the index's 2.4% loss yesterday - the sharpest since May - after the Bank of England said the UK's economic outlook was uncertain, and signs of US slowdown were "obviously not good news". The Pru climbed to 570.5p after reporting a 41% rise in first-half operating profits, and lowering the costs of its failed bid for AIA to £377m. It also boosted its dividend by 5% to 6.16p per share. Other risers include Rolls Royce which climbed 1.6% to 561p. Rumours Vedanta Resources is discussing buying assets or taking a large stake in Cairn Energy ...