FTSE 100 recovers after banks, miners show gains

London's blue-chip shares staged a tentative recovery on Friday from their worst day in six weeks a day earlier, led by gains in banks and miners, even as weak earnings dragged on utilities, SSE and Centrica, and Johnson Matthey. The FTSE 100 index was up 0.3 per cent and the FTSE 250 was down 0.1 per cent by 0855 GMT after suffering steep falls in the last session when Bank of England slashed economic growth forecasts amid Brexit uncertainties.

Investors also fretted about the protracted U.S.-China trade spat after news that U.S. President Donald Trump did not plan to meet Chinese President Xi Jinping before a March 1 deadline set by the two countries to strike a trade deal. "Whilst this is a bit of a blow, it's not in itself a reason to think trade talks are not going anywhere," Neil Wilson, Markets.com analyst, said.

Ocado, which has lost more than a billion pounds in market value over the last two sessions after a fire at its robotic distribution centre, added 2.2 per cent to top the main index. Bank stocks were also higher after slipping in the previous session, but RBS was 1.3 per cent lower a day after a report that the British government would consider trimming its stake in the bank.

Luxury brand Burberry added 1.2 per cent, boosted by French luxury handbag label Hermes' results and comments that said sales momentum in its Chinese stores stayed strong in the fourth quarter. SSE, a part of Britain's so-called "Bix Six" energy suppliers, declined by 1.6 per cent after cutting profit target hit by the suspension of payments from a back-up power scheme to suppliers.

The firm's bleak forecast, as well as a rating downgrade by Citigroup, dragged down peer Centrica nearly 3 per cent. Autocatalyst maker Johnson Matthey was knocked lower after rival Umicore warned of slowing autos demand in China, the world's top car market.

Oil shares were the worst-performing shares on the main index with crude prices dampened by worries over a global economic slowdown, while dollar earners including Unilever advanced on a weaker pound. Earthport shares surged 13.4 per cent as Visa tabled an increased buyout offer for the British payment company, topping an earlier bid from Mastercard.

(With inputs from agencies.)