SHARES STRONGLY UP/DOWN this week 19/12/05 (Master RSI)

FTSE starts slightly lower

Headline shares were lower in opening deals with a weak showing on Wall Street prompting investors to cash in profits in the run-up to Christmas and as ICI was knocked by a broker downgrade.

At 8:15am, the FTSE100 was 6.7 points lower at 5,533.1 with the FTSE250 down 5 points at 8,589.3 while the AIM100 fell 12.4 points to 5,193.1.

Meanwhile, on Wall Street, stocks closed near their worst levels of the day after early gains fizzled out as market players questioned whether a late-year rally has unwound.

The Dow Jones ended 39.06 points lower at 10,836.53, while the S&P500 fell 7.4 to 1,259.92 and the Nasdaq Composite dropped 29.74 points to 2,222.74.

And in the US today, inflation, and in turn the next steps for the FOMC, will remain in focus, with housing data and PPI due for release through the session.

In Asia the mood was mixed as the Nikkei finished up 249.78 points at 15,641.26, while at midday the Hang Seng was off 23.56 at 15,159.33.

Still in Asia, oil prices continued to languish well below $60 a barrel amid expectations of a warmer-than-expected winter in the US, the world's biggest consumer.

Nevertheless, earlier this morning New York's main contract, light sweet crude for delivery in January, was up 18 cents at $57.52 a barrel.

Back in London, ICI topped the blue chip fallers, down 5.25p at 325.75p, after the chemicals group was downgraded to sell from hold at Citigroup on rising pension liabilities.

The broker predicts the pension deficit will widen by about £250m, resulting in a £25m hit on pretax profits.

Accordingly, Citigroup slashed 7% from its EPS forecasts for 2006.