Tonight:
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Friday January 2 update
Only two days into the New Year, the gloves have come off among the UK's biggest grocers in a new battle over market share.
Asda, owned by US operated, the world's biggest retailer, says it plans to slash prices on 1000 essential items ranging from fresh and frozen foods, bread and toiletries at its 350 stores across the country. Offers include £1 deals on a range of 100 frozen goods and three-for-£10 deals on wines, joints of chicken and meat and 200 health and beauty lines at £1.
The move is expected to increase the pressure on other supermarket chains, including market-leader Tesco, 1.1p firmer at 361.1p, J Sainsbury, up 4½p at 333p, and Wm Morrison, 4p better at 284¼p. Tesco insists it has already dropped prices on thousands of lines and plans more cuts. The UK supermarkets remain highly profitable but margins came under greater pressure in 2008 from increased competition, rising food inflation and energy costs.
The first trading session of the New Year counted for little among stock market investors, many of whom appeared happy to extend their festive break. Share prices traded flat, with few punters willing to open fresh positions ahead of the weekend. Wall Street does not resume trading until this afternoon and Tokyo remains closed. Even so, the FTSE 100 index managed to rise 17.92 to 4452.09, having fallen almost 32% last year - its biggest loss since 1985.
Falls might have been the order of the day had it not been for another positive showing by the miners. Vedanta Resources rose 33½p to 645p, Anglo American put on 30p to 1576p and Eurasian Natural Resources 5¼p to 335¼p.
Autonomy enjoyed a strong start to 2009, with the price adding 29p at 980p. The group, which develops security for computer software systems, was upgraded by several brokers in the run-up to Christmas. Panmure Gordon moved from sell to hold and jacked up its target from 708p to 804p while Teather started coverage of the shares with a buy rating and 1100p target.
McBride, a supplier of own-label household and personal care products to supermarkets, marked time at 122p. It has been promoted to the FTSE 250 index following the £1.3 billion take-over earlier this week of Imperial Energy, unmoved on 1247p, by India's ONGC.
Investors in Hong Kong kicked off 2009 on a positive note. Chinese telecoms companies and equipment makers made much of the running ahead of the issue of 3G licences. Shares in energy stocks also gained on the back of a firmer oil price.
Asia's top oil and gas producer, PetroChina, jumped 3.8% while offshore oil producer CNOOC rose 3.5%. But turnover was on the thin side, with many investors choosing to extend their holiday.
The Hang Seng index ended the day 655.33 points higher at 15,042.81 .
The Tokyo stock exchange was closed.
