Mid-morning and despite a promising start, the FTSE 100 is experiencing some downwards pressure.

Bankers and miners are pulling the UK’s leading index in opposite directions today, with rising metal prices inspiring firm gains in the mining sector – Fresnillo (+1.23%) and Vedanta Resources (+1.04%) are among the biggest winners on the day so far. However, this momentum has been offset by weak performance from banks and retailers, and Barclays (-1.62%) is the weakest link following news the FSA has ordered a £60million payout for the mis-selling of pensions. Across the Atlantic, Apple hit the headlines overnight, posting record profits of $6billion. However, investors will be keeping a cautious eye on the company following news that iconic CEO Steve Jobs is taking a medical leave of
 absence.

Analysts are predicting the BoE will be raising interest rates earlier than expected this summer, after yesterday’s news that rising food and energy costs have pushed inflation to 3.7%. With the CPI nearly double its 2% target, and indications it will continue to rise in the next few months, there are calls for the MPC to act sooner rather than later and ease the squeeze continued inflation will put on household and corporate incomes. With a forecasted peak of 4.1% expected to take the shine off savings, it seems likely that we will continue to see private investors seeking better returns from the markets.