Economic news included a report from HBOS that house prices had fallen 1.7 per cent from June and 8.8 per cent from July 2007, being the largest year -on-year drop since records began in 1983.

The annual rate of inflation was 3.8 per cent in June, which is almost double the BOE's 2 per cent target rate.

Intraweek, a sharply lower oil price helped the London market break a losing streak as the cost of crude oil plunged to less than $119 a barrel.

In the US, the Dow Jones had its biggest one-day jump since April following the Federal Reserve's decision to leave rates unchanged, but gains were nearly wiped out following unemployment data and credit losses at American International Group.

Fenner plc has acquired Kesco for a total consideration of $1.9m. Kesco is based in Colorado and is a privately-owned business specialising in sale of conveyer-belts and providing splicing, repair and installation services relating to conveyer-belts. The group expects the acquisition to enhance its local capability and reinforce its market position.

Filtronic plc has agreed to sell its defence electronics business to Teledyne Ltd, for £13m. In the 12 months ended May 31, the business generated £14.5m of revenue and £1.3m of operating profit.

The transaction is expected to complete by the end of August. The company balance sheet will contain approximately £40m in cash and it is the intention of the board to declare another special dividend.

Imperial Energy plc has confirmed that it has received another approach for a possible cash offer for the company. It is rumoured that China Petroleum, the Chinese state-owned company better known as Sinopec Group, has launched a bid for Imperial and this could top the cash offer made last month, which industry sources said was from India's state-owned Oil and Natural Gas Company.

Selby-based electricity generator Drax Group announced its half-year results for the six months ended June 30. Total revenue increased by 25 per cent, to £802m, and Dorothy Thompson, the chief executive, said that during the first half of 2008, the group had continued to operate in line with its strategic focus.

LSL Property Services, a leading provider of residential property services, announced interim results for the six months ended June 30 2008.

The group reported satisfactory half year results despite a 54 per cent fall in mortgage approvals for house purchase.

Group revenue was down 10 per cent to £93.1m with underlying group operating profit down 41 per cent to £9.3m.

The group has elected to conserve cash until market conditions improve and as such no interim dividend will be payable in 2008.

Gregory O'KeefeAssistant Director at Brewin Dolphin, Leeds.