FTSE 100 flat as insurers weigh

The FTSE 100 remained flat, closing just 0.05 per cent higher at 4,236.28, as a rise in banking stocks offset a fall in the insurance sector.

Barclays was up by 2.77 per cent, while Lloyds Banking Group rose by 2.43 per cent and Royal Bank of Scotland was trading 2.35 per cent higher.

But Friends Provident plunged 6.73 per cent, while Old Mutual was down by 3.39 per cent and Standard Life fell 1.68 per cent.

British Airways was the highest riser on the index with a 5.46 per cent surge on the airline's passenger numbers for June.

In the US investors were still cautious following yesterday's job figures.

The Dow Jones index dropped 2.63 per cent, while the S&P 500 was down by 2.91 per cent as the markets headed into lunchtime.