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Equities slightly

higher in Europe

LONDON: Equities ended mixed to slightly higher as the summer holiday season kept many investors away, dealers said.

The FTSE 100, which traded in a narrow 10-point range throughout the session, finished 3.0 points higher at 3,444.4. The September FTSE futures contract was up 5.0 points at 3,450.0.

Trading volume was just under 500 million shares. Wall Street's weak start encouraged the few buyers that were around earlier in the session to run for cover in the final hour of trade.

The Dow, which was down around 40 points at one stage, was 32 points easier by the London close.

The share market is expected to stay in a narrow trading range ahead of Thursday's UK retail price (RPI) data. Retail prices are forecast to fall by 0.3 percent in July after rising 0.1 percent the previous month.

Strategists say sharper decline in the RPI could finally lay to rest fears about any near-term increase in UK base rates.

Technical analysts say the FTSE has good near-term support at the 3,340 level, with resistance pegged at 3,480. "We need to see the FTSE decisively break above 3,480 before we are sure that the uptrend has resumed. Until that happens we are likely to struggle," one analyst said.

A generally weaker bond market dampened investor sentiment, traders said. The September gilt future was down 5/32 to 104-28/32 while the September Bund fell 0.34 to 94.29.

The US long bond dropped over 1/2 point at one stage to yield 7.01 percent as the market worried that further US rate cuts could be delayed.

Federal Reserve vice chairman Alan Binder said the US economy would have to weaken from current levels before the Fed would cut rates again.

The US 30-year long bond clawed back some of its losses to trade down 7/32 at 98-25/32 to yield 6.97 percent by 1530 GMT.

Hanson was little changed after reporting third quarter figures in-line with market expectations. The shares ended up 1p 215-1/4p but some analysts remain bearish.

General Accident dipped 2p to 608p from an earlier high of 617p after reporting a 24.3 percent jump in first-half pre-tax profits.

Rank slipped 1p to 433p following news the company had signed an agreement to build a new resort and theme park in Florida, in partnership with Seagram Co's subsidiary MCA.

Glaxo rose 8p to 764, helped by a stronger dollar and a couple of broker by recommendations, dealers said.-Reuter