FTSE falls after disappointing US survey

London share prices closed lower, giving back their earlier gains, after a disappointing survey of US consumer confidence dashed hopes for a meaningful economic rebound in the second half of the year, dealers said.

The FTSE 100 index dropped 11.8 points to 4,137.0, and the broader indices closing mixed.

Volumes were slightly better than average, with 2.69 bn shares changing hands in 166,079 deals.

On Wall Street, the DJIA lost 74.02 points to 9,192.9 and the Nasdaq composite slid 14.05 to 1,721.31.

Shares had held their ground quite well today but sold off steeply this afternoon after the release of a woeful Conference Board survey of US consumer confidence data.

The headline index of consumer confidence slid to 76.6 in July from 83.5 in June, which was its lowest level since March, affected by the recent sharp rise in US unemployment.

The reading was also dramatically lower than Wall Street's expectations, suggesting investors' faith in the consumer-led second-half recovery story may have been misplaced.

Economists had expected the index to rise to 84.7 in July.