FTSE:6,024.03 (+6.49) Mid-250:12,145.42 (+43.15) Small Cap:3,316.75 (+5.37)

THE LONDON market struggled to make headway yesterday after banks and mining stocks slid on renewed fears about the strength of the global economic recovery.

The FTSE 100 index had made strong gains in recent days, having pushed above the 6,000 mark for the first time in more than a month after Greece agreed to tough austerity measures, making it seem likely it would avoid a debt default.

However, the blue chip index gained just 6.5 points yesterday, closing at 6024.03 after factory orders in the US came in lower than expected and China’s central bank warned that inflation pressures remained high. This caused commodity prices to slide, which impacted on mining shares.

Banks were hit by renewed fears over the euro zone debt crisis after a ratings agency warned that plans to roll-over Greek debt would be treated as a default.

Reckitt Benckiser, the maker of Cillit Bang and Dettol, gave support to the market following speculation that household goods giants Unilever and Procter Gamble were circling the company for a takeover bid. Shares were ahead 90p at 3578p.

Marks Spencer benefited from being upgraded to “buy” by analysts at Matrix, which helped its shares lift 9.2p to 376p, while other retailers including Tesco and Sainsbury’s also gained.

However, the market came under pressure as heavily weighted oil and mining stocks fell after Monday’s gains. Mining giants Rio Tinto and BHP Billiton were among the fallers.

Yet the biggest riser was Tullow Oil after it said it expected to post record revenues of $1.1 billion (£652.7 million) for the first half of 2011 and described its performance in the period as excellent. It said production from its Jubilee field off the coast of Ghana would see its output increase by 50 per cent over the next month. Shares were up 48p to 1301p.

Banks also dragged the market downwards as they surrendered earlier gains. Lloyds was down 1.1p to 48.8p, while Barclays was off 3.2p at 259.5p.

The biggest Footsie risers were Tullow Oil up 48p at 1301p, IMI ahead 41p at 1119p, Reckitt Benckiser up 90p at 3578p, and Marks Spencer ahead 9.2p at 376p.

The biggest Footsie fallers were Intertek down 53p at 1910p, Lloyds Banking Group off 1.1p at 48.8p, Arm Holdings down 8p at 601.5p, and Rio Tinto off 58.5p at 4478p. – (PA)