THE London market struggled to make headway yesterday after banks and mining stocks slid following renewed fears about the strength of the global economic recovery.

But the FTSE 100 gained only 6.5 points, closing at 6024, after factory orders in the US came in lower than expected and China’s central bank warned that inflation pressures remained high.

Banking stocks were hit by renewed fears over the eurozone debt crisis after a ratings agency warned that plans to roll over Greek debt would be treated as a default. The market was also hit by a lacklustre start on Wall Street.

The pound was up against the euro at 1.11 after disappointing eurozone service sector data was released today. Sterling was flat against the dollar at 1.61.

Reckitt Benckiser, the maker of Cillit Bang and Dettol, gave support to the market following speculation that household goods producers Unilever and Procter and Gamble were circling the company for a takeover bid. Shares were ahead 90p at 3578p.

Marks & Spencer benefited from being upgraded to “buy” by analysts at Matrix, which helped its shares rise 9.2p to 376p, while other retailers, including Tesco and Sainsbury’s, also gained.

However, the market came under pressure as heavily weighted oil and mining stocks fell after Monday’s gains. Mining companies Rio Tinto and BHP Billiton were among the fallers.

But the biggest riser was Tullow Oil after it said it expected to post record revenues of $1.1bn for the first half of 2011 and described its performance in the period as excellent.

Shares were up 48p to 1301p.

Banks also dragged the market downwards as they surrendered earlier gains.

Lloyds was down 1.1p to 48.8p, while Barclays was off 3.2p at 259½p.