THE London market struggled for direction today as investors digested yesterday’s pre-election Budget.

Despite a busy day for corporate news, the FTSE 100 Index only edged up 1.2 points to 5679 after Asian markets were mixed overnight as fears over European countries’ debts continued.

Yesterday’s news that Portugal’s debt was downgraded only added to fears about the massive levels of public debt afflicting European countries, with Greece’s well-documented woes still haunting the markets.

In the UK, Chancellor Alistair Darling’s Budget was still being dissected, with a prediction that borrowing would be £11 billion below forecast this year shining some rare positive light on the economy.

In company news, Next topped the Footsie risers board with a 4% gain after it said profits were up 18% to £505 million in the 12 months to January, while like-for-like sales were growing after four years of declines. Shares were up 88p at 2158p.

Holiday firms enjoyed another session on the front foot after Thomas Cook issued a positive trading update, boasting of strong summer holiday sales across its markets.

Thomas Cook rose 3.9p to 260p, while Thomson Holidays owner TUI Travel added 3.5p to 304.7p after it yesterday hailed a "significant recovery" in consumer demand.