Uncertainty over future interest rate policy left the FTSE 100 index little changed on Tuesday. At midday it was up 4.1 at 6434.2 after UK inflation figures were at their lowest level for five years.
Bid speculation was doing the rounds. Powerscreen International announced that it had agreed a £181m cash offer from US construction equipment maker Terex. Its shares closed up 20p at 191.5p on the news.
The Paris Air Show provided good news for Rolls-Royce, up 2p at 279.75p on Tuesday following £3.1bn of orders from Boeing and Airbus.
Meanwhile, British Aerospace shares edged down 3.25p to 415.25p despite reports that it was set to join Dasa in a new pan-European aerospace company with Spanish company Casa.
Toolmaker 600 Group was up 1p at 68.5p, helping to reverse losses incurred since announcing a 59% drop in full year profits on Monday. Profits were down from £9.9m to £4.1m and the company warned that trading was flat.
FKI shares lost 2.5p to 201p, a day after Lehman Brothers raised its forecast for the year by 17%. The company’s shares gained 7p to 203.5p on Monday in response.
Chains, gears and couplings group Renold was another faller, down 1.5p at 159p after reporting a fall in full year profits – down from £22.5m to £12.4m. The figures follow redundancy and restructuring costs totalling £1.8m