LONDON (AFX) - Leading shares are expected to start Friday's session slightly lower following a mixed performance on Wall Street overnight as investors assessed the economic impact of Hurricane Katrina and await key US jobs data due later, dealers said.
According to spread-betting firm IG Index, the FTSE 100 index is seen around 7 points lower at 5,321, after closing at 5,328.5 yesterday

MARKETS
FTSE 100 5,328.5, up 31.6
FTSE 250 7,798.5, up 49.3
DJIA 10,459.50, down 22.00
Nasdaq Comp 2,147.90, down 4.19
S&P 500 1,221.60, up 1.25
Tokyo: Nikkei closed at 12,600.00, up 93.03
Hang Seng midday 15,227.27, up 83.52
Gold 444.45 usd (433.40 usd)
Oil - Brent Oct 67.72 usd (67.02 usd)


TODAY'S PRESS
* PRUDENTIAL close to second deal with China's Citic - FT
* BOOTS set to complete sale of medicine division by end of this month - FT
* HMV and MICROSOFT unite in challenge to Apple's iPod - Guardian
* Dutch group TPG looks to hire rival force of British postmen - Telegraph
* Europe on standby to send petrol to the US - FT
* Pub groups want food distinction dropped to avoid smoking ban - FT
* 'Guardian' newspaper to switch to 'berliner' style on September 12 - FT
* Shore Capital to launch its first hedge fund - Times
* Hedge funds hold a quarter of Germany's blue chips - FT

PRESS COMMENT
FT
The Lex Column: EXEL/DEUTSCHE POST (Paying up for a board recommendation would discourage a potential counterbid from UPS or FedEx. This could justify a price of about 12 stg a share, which looks high but may be worth paying); Oil Markets (the gasoline price spike is unlikely to subside quickly and crude oil will be supported along with it); DIAGEO (reasonable organic growth, its scale, diversity, and strong cash conversion provide a solid defensive yield and operating leverage); NOVARTIS/CHIRON (The Swiss drug is pouncing at an opportune moment. The bid is below the 35 times average multiple for US biotech stocks, suggesting Chiron's minority investors should hold out for a sweetner. For Novartis, the deal would make sense at a higher price, because it beings a presence in vaccines)

Times
Rumour of the day: MANO RIVER (rumoured to be on the verge of announcing further good news from west Liberia) -- Smaller Stock to Watch: INSPACE -- Tempus: DIAGEO (The 4 pct yield should prompt investors to tuck the stock away regardless); WHITBREAD (Hold); HUNTING (Buy)

Daily Telegraph
Questor: AMEC (A hopeful buy); BBA (worth a punt); HUNTING (At this level it is a clear buy) - The Market: BOC (takeover rumours revive)

Independent
The Investment Column: WHITBREAD (sell); AXIS-SHIELD (With regret, still pass); AVIS EUROPE (Avoid)

Guardian
Market forces: BOC (rumours of 13 stg a share cash bid from BASF)

Daily Express
Share Whisper: UNITED CLEARING (speculation about a major contract win) - Who's Dealing: ROTALA (John Gunn increases stake) -- Market Report: SCOTTISH POWER (rumours of bid from overseas could prompt SCOTTISH & SOUTHERN ENERGY to counter)

Investors Chronicle
Large Companies Tips: CORUS, CARE UK, WATERMARK -- Smaller Companies Tips:TEN ALPS, HAMBLEDON MINING, INSPACE

Good morning all and thanks Greystone & Digger. This oil price hike will hit us all one way or another.

Morning Druid and All,

Profit taking day I would have thought.

End of day market wrap