Leading shares are just about clinging onto their gains ahead of Wall Street's opening following the Independence day holiday.
But Associated British Foods is missing out on the gains. The company, whose businesses encompass the Primark discount retailer, Silver Spoon sugar and Sunblest bread, is currently down 15p at £10.71, the second biggest faller in the FTSE 100.
It is the prospects for its bakery business which is affecting sentiment, following a profit warning from Dutch food group CSM, the world's largest bakery products supplier. CSM said it would see lower first half earnings after a higher than expected jump in raw materials costs, a familiar theme in recent months but one that seems to have taken its investors by surprise. And indeed, investors in ABF too.
Among the other fallers Intertek is down 65p at £18.98 - the top FTSE 100 faller - after analysts at Societe Generale moved from buy to hold following a meeting with the management, and warned of weaker trading.
But the bid froth continues with Reckitt Benckiser up 92p at £35.80 after speculation of interest from Unilever or even Procter & Gamble. Among the mid-caps takeover talk has buoyed chemicals company Yule Catto, up 15.9p to 245.9p.
Overall the FTSE 100 is up 7.45 points at 6024.99, off its best levels. Wall Street futures are indicating a 16 point rise on the Dow Jones Industrial Average, weaker than earlier on in the day.
