Footsie closes up after late rally

The Footsie 100 Index has closed up 4.6 at 4146.1.

A late rally pulled the index back above its opening price today as interest rate talk continued to dominate the City.

A strong start on Wall Street following a better-than-expected survey of the US service sector encouraged investors on this side of the Atlantic.

In London, with Marks & Spencer the heaviest faller, losing almost 7%, or 26.5p, at 353p after its warning that market conditions may become "less buoyant" spooked investors.

Shares in the revived group, which nevertheless posted strong half-year figures, had climbed to a four-month high last night.

Other store groups seemed to be affected by the caution with Next off 12p at 906p, GUS down 4p at 599p and electrical retailer Dixons down 9.25p at 188p.

Elsewhere, Vodafone, off 1p at 106.75p, BP, down 5p at 406.5p and GlaxoSmithKline, 3p lower at £12.28, all lost ground.

But banks nudged up on late support with Barclays moving up 13.5p to 478p, HSBC climbing 8p to 739p and Royal Bank of Scotland gaining 13p to £15.65.

In a busy day for corporate results electricity group Scottish Power moved up a penny to 373p after posting a hefty jump in half-year profits.

The group showed its troubled US business PacifiCorp was recovering from last year's US energy crisis but said its UK arm had fallen into the red.