Stock market rally ends as shares slip in UK

Blue-chip shares slipped today as the London market’s three-day rally ground to a halt.

The FTSE 100 Index was down 35.6 points at 4167.1 after failing to hold an earlier 70-point jump achieved in the wake of a strong US close last night.

The latest fluctuation followed one of the Footsie’s biggest single day’s gains on record _ up 4.6% or 186 points yesterday.

But analysts warned that conditions remained fragile, with investors on both sides of the Atlantic keen to book profits after the recent surge.

A number of heavyweight shares slid lower, weighing on the market.

Telecoms and financial stocks were partly to blame, with BT falling 3% and its former mobile phone operation mmO2 slipping by a similar amount.

The Big Four banks were also suffering in the wake of fierce criticism by MPs over the way they published details of their interest rates for bank accounts and credit cards.

Barclays was down nearly 2%, while NatWest owner Royal Bank of Scotland was off 3%, Lloyds TSB down more than 2% and HSBC 1% lower.

Drug stocks added to the Footsie’s fall, with GlaxoSmithKline off 3% and AstraZeneca down 2% as both lost hold of recent gains.

The overall mood was further hampered by new research showing that consumer confidence had fallen to its lowest level this year.

Accounting scandals and stock market slides were to blame, market research firm Martin Hamblin GfK said.