FTSE CLOSE: London market struggles for direction; top flight shares hold onto gains made on earlier this week

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Tenterhooks: What will Yellen say this afternoon?

17.15 (close): The London market struggled for direction, as top flight shares managed to hold on to gains made earlier this week.

The FTSE 100 Index edged 5.1 points higher to 6270.8, despite losses from miners who had started the session trading buoyantly.

Germany's DAX was flat and the Cac 40 in France was slightly down, with little economic news released today. In New York the Dow Jones Industrial Average edged ahead in early trading.

Top flight shares in London finished the week around 100 points higher compared to their close last Friday.

The pound was down slightly against the US dollar at 1.46, as US consumer sentiment rose to 94.7 in May, the highest in almost a year, according to a closely-watched University of Michigan index.

Sterling was up slightly against the euro at 1.31.

Heavyweight miners were among the biggest fallers, as prices for copper and iron ore eased back from robust gains earlier in the session, dimming prospects for world trade.

Anglo American fell 17.2p to 612p, Antofagasta slipped 11.3p to 436.6p and BHP Billiton was 11.5p lower at 840.3p.

However, banking stocks recovered their poise after being dragged down on Thursday by news of Spain's Banco Popular's 2.5billion euro (£1.9billion) rights issue.

Barclays lifted 1.4p to 186.2p, Royal Bank of Scotland rose 2.6p to 251.2p and HSBC climbed 2.5p to 448.5p.

Oil stocks lost ground as Brent crude fell back from above 50 US dollars a barrel earlier this week, its highest level this year.

Brent crude was down 0.5 per cent to just over 49 US dollars a barrel, which saw BP ease by 2.5p to 362p and Royal Dutch Shell slip 12p to 1680.5p.

High street retailer Marks & Spencer was lower for the third day in a row after new boss Steve Rowe warned earlier in the week that profits will take a hit in the short term under a turnaround plan to slash clothing prices and put more staff in stores.

Mr Rowe, who took on the top job from Marc Bolland in April, said it was his 'top priority' to get clothing sales back on track.

He will cut everyday prices for nearly a third - 30 per cent - of its clothing ranges, while reducing promotions and clearance sales.

Shares slipped 4p to 386.6p, and have fallen 13 per cent since the day prior to his announcement on Wednesday.

Liberum analyst Tom Gadsby said: 'It is not unusual that a new chief executive lowers guidance and increases investment but the extent of the reset took many by surprise.

'Much is yet to be addressed. The UK store base, too big and inflexible in our view, is the elephant in the room while the online shift is dilutive to margins.'

The biggest risers on the FTSE 100 Index were Royal Mail up 10.5p at 532.5p, Carnival up 67p at 3446p, United Utilities up 16p at 971p and 3i Group up 9p at 552p.

The biggest fallers on the FTSE 100 Index were Anglo American down 17.2p at 612p, Antofagasta down 11.3p at 436.6p, Capita down 23p to 1075p and Randgold Resources down 120p to 5735p.

15.40: The Footsie was unmoved in late afternoon trading as investors on Wall Street wait for a speech from Federal Reserve Chair Janet Yellen for further clues on the timing of the next interest rate hike.

The FTSE 100 index was down just 2.9 points at 6,262.9, while the in the US the Dow Jones industrial average rose 6.51 points to 17,834.8 at the opening bell. 

Monday is a bank holiday in the US and the UK and as a result trading volumes have been low. 

Wall Street closed mostly flat yesterday as investors took a breather following two days of strong gains.

Nevertheless before traders bolt for the door, Federal Reserve Chair Janet Yellen will give a speech on the state of the US economy and the path of interest rates.

Economists predict two rate boosts this year, and Yellen could use the appearance to signal that that the first one will take place as early as June.

Investors have grown more comfortable with the idea that the central bank could raise rates in June, with many taking the view that such a hike would reflect improvement in the country's economy.

The Fed funds futures are now pricing in a 25 per cent chance of a rate hike in June and 45 per cent in July after a string of strong data and comments from policymakers. 

Data already out this afternoon showed US economic grew by more than expected in the first quarter - boosting rate hike possibilities further.

GDP increased at a 0.8 per cent annual rate as opposed to the 0.5 percent pace reported last month. 

Jasper Lawler, at CMC Markets, said: 'The long holiday weekend in the UK and the US has made for lacklustre trading on Friday. 

'UK markets are closed this Monday for the May bank holiday whilst the US is off for Memorial Day. If not physically out of the office, traders were mentally checked out. 

'The FTSE 100 was flat as a pancake, unchanged from yesterday's closing levels.

'Ms Yellen's speech is likely to be a lot more nuanced than other Fed officials. 

'The Dow Jones is sitting less than 3 per cent from its record peak in a low volume day before Memorial Day weekend.'

13:30: The Footsie stayed flat in early afternoon trading reflecting a retreat by oil prices and caution ahead of a speech today from Federal Reserve boss Janet Yellen, with US rate hike expectations enhanced by an, as expected, big revision to US first quarter growth data.

An hour ahead of Wall Street's restart, the FTSE 100 was down 2.8 points at 6,262.8, stuck in a tight trading range between the day's high of 6.275.90 and low of 6,256.45 but on course for around a 1.8 per cent advance on the week, its best weekly advance for six weeks.

European markets were mixed, with France's CAC 40 index losing 0.1 per cent, but Germany's Dax 30 index adding 0.2 per cent.

US stock index futures continued to point to modest early gains today in New York after the Dow Jones Industrials ended little changed yesterday following two previous sessions of strong gains on stronger oil prices and upbeat US data.

Small rise: US stock index futures continued to point to modest early gains today in New York after the Dow Jones Industrials ended little changed yesterday following two previous sessions of strong gains

Today's first revision to first quarter US GDP came in at +0.8 per cent quarter-on-quarter, as forecast, and well above the preliminary reading of +0.5 per cent.

David Morrison, Senior Market Strategist at SpreadCo., said: 'The question is how this affects the odds on a Fed rate hike this summer? As far as the markets are concerned, not very much so far although it certainly keeps the prospect alive.

'However, it's unlikely investors will want to take on additional exposure ahead of Janet Yellen's public appearance this evening and the long holiday weekend. Whether the Fed Chair says anything related to monetary policy is another matter altogether.

He added: 'What should prove far more significant is next week's raft of manufacturing PMIs along with the latest US Non-Farm Payroll release. '

Comments from Fed chair Yellen will be in focus later as she gives a Q&A session at Harvard University, as will the latest University of Michigan consumer sentiment index.

Oil prices remained weaker having breached the $50 mark for the first time in seven months yesterday, with investors worried that higher prices could reactivate shuttered crude output, adding to global oversupply. In early afternoon trade, Brent crude was down 1.1 per cent at $49.04.

On currency markets, the pound stayed lower versus the dollar, off 0.1 per cent at $1.4647, but was up 0.1 per cent against the euro at €1.3112 as uncertainties over next month's European Union membership referendum continued to dominate.

12.30: The Footsie was flat at lunchtime weighed by a retreat in oil prices further from the $50 a barrel level, with traders cautious ahead of some key US data and a speech today from Federal Reserve boss Janet Yellen, and with long holiday weekends to come in both the UK and US.

By mid session, the FTSE 100 was down 3.6 points at 6,263.1, stuck in a tight trading range between the day's high of 6,275.90 and low of 6,256.45. 

Trading was thin ahead of the late May Bank holiday weekend after a bullish week which has seen the index bounce around 1.8 per cent higher, its biggest weekly advance for six weeks.

Footsie flat: Traders were cautious ahead of some key US data and a speech today from Federal Reserve boss Janet Yellen (pictured), and with long holiday weekends to come in both the UK and US

European markets also ticked higher, with France's CAC 40 index up 0.1 per cent and Germany's Dax 30 index ahead 0.2 per cent.

US stock index futures were also pointing to modest early gains in New York after the Dow Jones Industrials ended little changed yesterday following two previous sessions of strong gains.

Comments from Fed chair Yellen will be in focus later as she gives a Q&A session at Harvard University, as will the first revision to US first quarter GDP growth, and the latest University of Michigan consumer sentiment index.

Jasper Lawler, Market Analyst at CMC Markets, said: 'Equity investors appear to be cautiously upbeat ahead of a speech from Fed Chair Yellen at Harvard University and US GDP data, both of which are likely to impact the expected timing of any US rate rise.

'Ms Yellen's speech is likely to be a lot more nuanced than other Fed officials and may not give the outright signal for a rate hike dollar-bulls are looking for, which is probably a positive for equities.'

But oil prices were lower having breached the $50 mark for the first time in seven months yesterday, with investors worried that higher prices could reactivate shuttered crude output, adding to global oversupply. 

At lunchtime, Brent crude was down 1.3 per cent at $49.96.

On currency markets, the pound slipped back again versus the dollar, down 0.1 per cent to $1.4646, and was flat against the euro at €1.3102 as uncertainties over next month's European Union membership referendum continued to dominate.

A British exit from the EU would be a serious risk to global economic growth, the G7 leaders said in a summit declaration today, even though German Chancellor Angela Merkel said the issue had not been discussed.

Among equities, heavyweight miners were blue chip risers, as prices for copper and iron ore climbed amid brighter prospects for world trade, with Rio Tinto the top FTSE 100 gainer, up 2.5 per cent or 49p to 2,018p, while Glencore gained 1.5 per cent, or 2.1p to 138.1p.

Meanwhile, banking stocks recovered their poise after being dragged lower on Thursday by news of a €2.5billion (£1.9billion) rights issue from Spain's Banco Popular.

Barclays gained 1.4p to 186.2p, Royal Bank of Scotland also rose 1.4p to 250.0p, and HSBC was up 2.2p to 448.2p.

But oil stocks lost ground as Brent crude dropped back from its highest level this year, with BP down 1.7p to 362.8p and Royal Dutch Shell off 0.5p to 1,692.5p.

And high street retailer Marks & Spencer was lower for the third day in a row as French broker Societe General cut its rating on the stock to hold from buy in the wake of new boss Steve Rowe's warning earlier this week that profits will take a hit in the short term under his turnaround plan.

Mr Rowe, who took on the top job from Marc Bolland in April, said he will cut everyday prices for nearly a third – 30 per cent - of its clothing ranges, while reducing promotions and clearance sales.

M&S shares lost another 4.1p to 386.5p, having fallen more than 12 per cent since the day prior to the group's results announcement on Wednesday.

The biggest faller on the FTSE 100 index remained outsourcing firm Capita, down 2.4 per cent, or 26p to 1,072p after Exane BNP Paribas cut its stance to underperform. 

09.45: The Footsie stayed weak as the morning session progressed following mixed performances overnight from US and Asian markets as oil prices slipped back below the $50 a barrel level, with 'Brexit' fears a focus after a warning on the economic risks from the G7 summit.

By mid morning, the FTSE 100 was down 6.3 points, or 0.1 per cent at 6,259.4, having closed 2.8 points higher yesterday.

Investors were focused on the long late May UK Bank holiday weekend after a bullish week which has seen the index bounce around 1.8 per cent higher, its biggest weekly gain for six weeks, and edge into positive territory for the month.

European markets were also lower, with France's CAC 40 index and Germany's Dax 30 index both down 0.2 per cent.

Crude easier: The Footsie stayed weak as the morning session progressed following mixed performances overnight from US and Asian markets as oil prices slipped back below the $50 a barrel level

US stocks eased back overnight, retracing some of a strong two session rally as oil prices retreated, but Asian markets still managed modest gains today.

Oil prices ran into resistance today having breached the $50 mark for the first time in seven months yesterday, as investors worried that higher prices could reactivate shuttered crude output, adding to global oversupply. In London trading, Brent crude was down 1.4 per cent at $48.90.

On currency markets, the pound ticked higher against the dollar and the euro, at $1.4669 and €1.3117 respectively, as worries over next month's European Union membership referendum continued to ebb and flow.

A British exit from the EU would be a serious risk to global economic growth, the G7 leaders said in a summit communique today, even though German Chancellor Angela Merkel said the issue had not been discussed.

Meanwhile, although morale among British consumers edged higher in May, uncertainty around the June 23 referendum continued to cloud the economic outlook.

The GfK UK Consumer Confidence index increased by two points from April, when it dropped into negative territory for the first time in 15 months, but remained at minus 1.

Tony Cross, Market Analyst at Trustnet Direct, said: 'Looking ahead we've got little on the economic calendar in the UK or mainland Europe, although the US GDP revision – and perhaps more significantly the Michigan Consumer Sentiment survey – will be under scrutiny again for more clues over the likelihood of a US rate hike in June.

'With risk aversion likely to be front of mind heading into the long weekend break, anything that suggests Janet Yellen may be in a position to tighten momentary policy again quickly could well be a trigger for some short term profit taking.

'However for a month that is often seen as challenging for the market, the performance so far still looks upbeat.'

Comments from Fed chair Yellen will be in focus later today as she gives a Q&A session at Harvard University, as will the first revision to US first quarter GDP growth, and the latest University of Michigan consumer sentiment index.

Among equities in London, gains by some heavyweight mining stocks again provided an underlying prop for the FTSE 100 index, with Rio Tinto up 18.5p at 1,987.5p, and Fresnillo ahead 8p at 1,040p as copper and gold prices rose.

But outsourcing group Capita was the top FTSE 100 faller, shedding 1.7 per cent, or 19p at 1,079p after French broker Exane BNP Paribas cut its rating on the stock to underperform.

On the second line, closed-life fund consolidator Phoenix Group was the biggest FTSE 250 gainer, up 2.2 per cent or 19p at 898.5p on news it has agreed a £375million cash deal to acquire the pensions and protection business of AXA Wealth, the wealth management arm of the French insurer.

Phoenix said the businesses acquired – which trade under the Embassy and SunLife brands - will add around £12.3billion in assets under management to its books, along with more than 910,000 policies.

But mid cap engineering firm Bodycote lost 1 per cent, or 6p at 593.3p after it said group revenue for the four months to the end of April fell 4.9 per cent year-on-year to £192.4million, although it maintained its expectations for 2016. 

08.15: The Footsie edged lower in early trading, continuing yesterday's cautious showing after mixed performances overnight from US and Asian markets as oil prices slipped back below the $50 a barrel level, with 'Brexit' fears a focus after a warning on the economic risks from the G7 summit.

In opening deals, the FTSE 100 was down 3.7 points at 6,262.0, having closed 2.8 points higher yesterday, with trading volumes thin.

Investors were focused ahead to a long late May Bank holiday weekend after a bullish week which has seen the index bounce around 1.8 per cent higher and edge into positive territory for the month.

US stocks were lower overnight, giving back some of a strong two session rally as oil prices retreated, but Asian markets managed modest gains today as recent US data continued to cast the world's biggest economy in a positive light.

Footsie down: Investors were focused on the late May Bank holiday weekend after a bullish week which has seen the FTSE 100 index bounce around 1.8 per cent higher and edge into positive territory for the month

Oil prices ran into resistance having surpassed the $50 a barrel mark for the first time in seven months yesterday, as investors worried that higher prices could reactivate shuttered crude output, adding to global oversupply.

In early London trading, Brent crude was down 0.7 per cent at $49.24.

On currency markets, the pound edged 0.1 per cent lower again versus both the dollar and the euro, at $1.4648 and €1.3085 respectively, as worries over next month's European Union membership referendum continued to dominate.

A British exit from the EU would be a serious risk to global economic growth, the G7 leaders said in a summit declaration today, even though German Chancellor Angela Merkel said the issue had not been discussed.

Meanwhile, although morale among British consumers edged higher in May, uncertainty around the June 23 referendum continued to cloud the economic outlook.

The GfK UK Consumer Confidence index increased by two points from April, when it dropped into negative territory for the first time in 15 months, but remains at minus 1.

Simon Smith, Chief Economist at FXPro, said: 'There is a hesitant tone to markets towards the end of the week. The two factors contributing to this are the G7 meeting taking place in Japan and a scheduled speech by FOMC Chair Yellen later today.'

He added: 'Overnight, the G7 were pretty downbeat on the prospects for the economy should the UK choose to leave the EU next month. That should not be surprising given the comments heard previously from the US.'

Smith continued: 'With regards to Yellen, today's event is more a Q&A session, so not the traditional format for steering monetary policy expectations, but nevertheless markets will be sensitive given the recent indications from other FOMC members that June is a live meeting.

'Ahead of Yellen, we see further detail and revisions for US GDP data. The first quarter fell to the soft side, expanding at the weakest pace for two years. Some upward revisions are anticipated this time around.'

Stocks in Focus in London include:

PHOENIX GROUP: French insurance company Axa said it has agreed to sell its UK investment and pensions business and its direct protection business in the UK to Phoenix Group.

SPORTS DIRECT: British lawmakers have rejected an invitation to visit Sports Direct's headquarters, which the retailer's billionaire founder Mike Ashley had set as a pre-condition for him to appear in parliament to answer questions about workers' treatment.

NEW WORLD RESOURCES: A Czech court has issued a preliminary injunction taking away New World Resources' control over its mining subsidiary OKD and handing it to a board of creditors.

UK company news scheduled today includes:

Finals: Nature Group

AGMs: Bodycote, Flying Brands, Escher Group, Mincon Group, Tekcapital, AcenciA Debt Strategies

Economic news scheduled today includes:

UK GfK consumer confidence released overnight

Second reading for US Q1 GDP at 1.30pm

UMich final consumer confidence survey at 3pm