London open: Mild gains for blue chips

29th Dec 2010 09:17

It's a quiet start to the shortened trading week with investors seeming content to wait until the real action picks up again next week.Weather continues to make headlines with this time the blizzards in the US driving up oil prices to a 26-month high above $91 a barrel. Heating oil prices in particular are rising. Royal Dutch Shell is one of the best performers this morning.Miners are mixed with the increase in Chinese interest rates four days ago knocking the base metals specialists, while concern about the bond markets is still sending money into gold and silver. Randgold Resources is the best of the risers this morning alongside African Barrick Gold. Silver miner Fresnillo is also higher. Banks are a weak spot on worries over the debt issues facing the eurozone. Royal Bank of Scotland and Lloyds are both under pressure. Smith & Nephew is weak on yesterday's decision by the US Food and Drug Administration to issue a warning about production methods at a S&N factory in Germany that makes hip replacements.