London market slips 41 points today

The London market was dragged down by a poor performance across the Atlantic today as concerns over rising oil prices and interest rates weighed heavily.

The FTSE 100 Index dropped 41.8 points to 4412.9 after employment figures at home suggested there was still scope for another rates rise by the Bank of England.

Figures released by the Office for National Statistics showed unemployment had reached a new low and more people were in work than for two decades.

The Footsie mirrored the downbeat mood in New York, where the Dow Jones Industrial Average weakened more than a hundred points by closing time in London.

Companies in the spotlight in London included satellite broadcaster BSkyB, which said it had doubled profits after hitting a key subscriber target three months early.

But shares in the group fell nearly 5%, or 32.5p to 621p after it reported slower growth in subscribers to its direct-to-home service in the UK in contrast to a surge in demand for Sky+ digital TV boxes.

Other media stocks trailed it at the top of the fallers board, with Reuters weakening 17p to 332.75p and ITV was 5p lower at 112.25p.

British Airways also took a hit as concerns over the high cost of oil continued to weigh heavily on its share price, which fell 10.5p to 253p.

But Cable & Wireless soared close to the top of the Footsie with a 2% or 2p rise to 117.75p after JP Morgan upgraded the stock, citing positive momentum in the UK, cash returns to shareholders and an attractive valuation.

Fellow telecoms group mmO2 was in the red despite brokers Investec saying the recent weakness in the stock value represented a buying opportunity ahead of its annual results. Shares retreated 1.5p to 93.5p. Vodafone also lost 2p to 134.5p.

Silk Cut owner Gallaher cheered 2.5p to 671.5p after bucking a decline in the cigarette market with a sales rise of 7% this year.

And leisure group Whitbread was off 13.5p to 752p after announcing it is to sell a string of three-star hotels in a bid to focus on its budget and luxury chains.

The biggest risers in the Footsie today were Enterprise Inns up 32p to 592p, Cable & Wireless cheering 2p to 117.75p, Scottish & Newcastle lifting 6.75p to 408.5p and Reckitt Benckiser advancing 21p to 1455p.

The heaviest fallers were BSkyB weakening 32.5p to 621p, Reuters down 17p to 332.75p, ITV slipping 5p to 112.25p and British Airways off 10.5p to 253p.