FTSE opens on downbeat note

London shares opened on a downbeat note today after a late sell-off on Wall Street and earlier weakness in the Far East.

The FTSE 100 Index failed to build on last night’s gains, slipping 15.8 points to 4438 in the first hour.

Soaring oil prices and fears of higher interest rates combined to leave the Dow Jones Industrial Average 34.5 points adrift last night.

Worries about oil prices triggering higher costs for industry also caused stocks to decline in Asian markets overnight, although the Japanese Nikkei index recovered to end the session nearly 25 points ahead.

On a slow day for corporate news in London, high street retailer Dixons headed the Footsie risers after broker Credit Suisse First Boston upgraded the stock, saying recent weakness offered a buying opportunity. Shares rose 2.5p to 149.25p.

Troubled retailer Marks & Spencer also gained more than 1%, or 3.75p to 279p, following yesterday’s appointment of Asda product director Kate Bostock as its new head of womenswear.

Sainsbury’s was up 2.25p to 273p after news that it was buying 14 stores from Morrisons.

But high street chemist chain Boots lost 5.5p to 620.5p after saying it had extended an IT systems upgrade deal with Xansa.