US stocks made hesitant gains on Tuesday following the release of softer-than-expected producer price inflation data, although trading volumes remained low. Analysts also noted market concerns about a weak set of US retail sales figures.

The London equities market edged lower by the end of morning trade yesterday with bid speculation swirling around Marks & Spencer and also in the mid-cap oil sector with investors keeping an eye on possible developments at the Opec meeting in Vienna. The FTSE 100 fell 0.1 per cent to 5,043.2 while the FTSE 250 also fell 0.1 per cent to 7,281.2 by mid morning.

Europe's bourses gave up early slight gains to drift sideways at midday as the market also awaited the decision of the Organisation of the Petroleum Exporting Countries on raising its production quota. Oil remains above $55 a barrel ahead of the Vienna meeting of the cartel. The FTSE Eurofirst 300 was flat at 1,136.98 with the Xetra Dax in Frankfurt also flat at 4,592.47, while the CAC-40 in Paris added 0.1 per cent to 4,202.04.

Japan's Nikkei 225 stock index closed at a two-month high yesterday, as bank shares moved sharply up following a bullish report from Nikko Citigroup and exporters gained from continuing dollar strength against the yen. The Nikkei 225 rose 0.7 per cent to 11,415.88. The Topix was also up 0.7 per cent at 1,158.23 by the close of morning trading.