LONDON (ShareCast) - A mini fight-back in the early afternoon, influenced by the expected good start in the US, petered out when Wall Street opened mixed.

Interest rates were kept at 5% after the Bank of England decided the threat of recession is currently too great to start tackling soaring inflation with higher borrowing costs.

Kingfisher is the biggest faller in a weak retailing sector after Goldman Sachs placed the DIY outfit on its conviction sell list.

Foods group and Primark owner Associated British Foods is down despite posting a 24% jump in third quarter revenues as it said like-for-like sales at its discount fashion chain Primark was held back by weak trading in April due to the deteriorating consumer background. Reduced profit expectations in its sugar business had a knock-on effect on fellow sugar producer Tate & Lyle.

Other retailers such as Debenhams, Next and Carphone Warehouse are posting big losses, as is sportswear retailer Sports Direct after it reported a 51.1% fall in full year profit and said it does not expect to see much growth this year as it battles against a decline in consumer spending.

On the bright side, credit checking firm Experian is wanted after reporting a 1% rise in first quarter organic revenue, despite market expectations of a decline.

Hedge fund manager Man Group is also on the up after it said funds under management (FUM) rose to $79.5bn at 30 June 2008 from $74.6bn at 31 March 2008.

Mining stocks also provide some relief from the sea of red on the Footsie leaderboard. Antofagasta is boosted by Citigroup upgrading the stock from “hold” to “buy”.

Rio Tinto is barely changed after announcing the $495m sale of the Kintyre uranium project in Western Austrralia.

Ferrochrome producer International Ferro Metals is shining after it produced record levels of ferrochrome in the second quarter of 2008 as demand for the essential ingredient in stainless steel remains strong.

Homebuilder Barratt Developments rallies after a trading update this morning. The company expects to take an £85m write-down hit in its full-year results but is on the verge of signing new banking arrangements.

German firm GfK clarified today that there was no certainty it will make an offer for market research group Taylor Nelson (TNS).

Strong international growth compensated for a slowdown in the UK market in the final quarter of recruitment firm Hays’s financial year.

Digital photography firm Photo-Me International reported a full year loss after it was hit by £19.8m of strategic and restructuring costs.

Computer aided design specialist Aveva said it is currently trading in line with expectations after a good start to the financial year.

Shares in oil explorer Soco dropped sharply as it encountered more problems drilling at the Te Giac Den ("TGD-1X-ST1") discovery well on Prospect "E", offshore Vietnam.

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