Footsie fails to hold on to early gains
London shares have lost nearly all of their early gains following the cut in US interest rates.
Traders had expected the Footsie index of 100 leading stocks to open ahead following the Federal Reserve's 0.5% cut in interest rates last night and a late rally by the Dow Jones Industrial Average.
Despite an early rise of 52 points, the Footsie was unable to sustain its rally - falling 56.2 points after an hour's trading to stand at 4776.1.
Investors will now be looking ahead to the Bank of England's decision tomorrow to see if it follows the Fed's lead in cutting interest rates.
Buoyant figures from the CBI, showing that shoppers have not been deterred from spending on the high street, will strengthen the argument for rates to remain on hold.
Banks are among the fallers on the London market, with Standard Chartered down 12p at 638p; HSBC off 14p at 696p; Alliance & Leicester off 16p at 731p; Abbey National down 11½p at 967p; Lloyds TSB slipping 6½p to 648½p; and Royal Bank of Scotland 7p lower at £14.56.
Shares in Marks & Spencer are up by 3% or 7¼p to 270¼p, helped by reports it's closer to selling its French stores.
Other retailers have been helped by the high street data released today, with Dixons up 4¾p at 191¾p; Great Universal Stores rising 4½p to 522p; Kingfisher lifting 2p to 312½p; and Next up 5½p at 920½p.
Among the second-tier stocks, Colt Telecom is up nearly 60% or 36¾p to 98¾p after announcing it will raise £400m in a share issue aimed at securing its future.
JJB Sports is down 8½p to 411½p, despite recording profits above expectations. The group said it was wary about the impact of the US terrorist attacks on consumer confidence.
