FTSE down

Fears over the US economy dragged the London market into the red today.

US Federal Reserve chairman Ben Bernanke's comments that the country's housing slowdown could hold back economic growth for "somewhat longer than previously expected" hit trading on Wall Street.

The negative sentiment saw the FTSE 100 Index close 31.3 points lower at 6632.8.

InterContinental Hotels was the leading faller, down 3% or 43p to 1370p, as its chief executive played down prospects of a private equity bid.

Property firms were out of favour among investors as Segro, formerly called Slough Estates, dropped 17p to 700p. Land Securities fell 42p to 1877p and Hammerson slipped 26p to 1582p.

Meanwhile downbeat retail survey data dragged down Next, off 52p at 2194p, and B&Q owner Kingfisher, down 5.5p at 245p as figures showed slowing clothing and DIY sales during May due to wet weather and rises in interest rates.

But United Utilities was the session's top riser as investors cheered news that the company is set to sell off its electricity distribution assets to concentrate on its water business.

The stock was up more than 3%, or 23.5p at 796p, after the group also posted a 13% rise in underlying profits to £828m (€1.22bn).

Broker upgrades also helped insurance firms and mining stocks make gains today.

Standard Life rose 2p to 340p as Merrill Lynch said it saw "superior growth opportunities" for the stock. The note benefited fellow insurer Legal & General, which rose 0.4p to 154.8p, although Prudential closed 8p off at 757p.

Miner Kazakhmys was ahead 15p at 1315p after an upgrade from Citigroup, while sector peer BHP Billiton gained 21p to 1282p and Antofagasta cheered 6p to 579.5p.

Meanwhile Royal Bank of Scotland climbed 2.5p to 640.5p as the group shrugged off the impact of a weaker US dollar to post an upbeat interim update.

The banking group also impressed traders as it reported an improvement in the unsecured credit market and said that it expects to see a "modest reduction" in impairment losses at its UK retail arm over the full-year.

In the second tier, Carphone Warehouse gained more than 6%, or 18.5p to 322p, even as it reported a near-10% fall in full year pre-tax profits as the start-up costs of its broadband service and the launch of its French operations took their toll.

The group said it was now in a good position to grow the business and analysts expect to see a positive uplift from the investments in the broadband business.

Low-cost airline easyJet moved in the opposite direction with a drop of nearly 7%, or 38p to 525p, amid a cautious outlook from rival Ryanair which warned of a slowdown in passenger numbers during the year ahead.

The highest Footsie risers were United Utilities, up 23.5p at 796p, Johnson Matthey ahead 32p at 1682p, BHP Billiton up 21p at 1282p, and Drax Group up 10.5p to 786.5p.

The leading Footsie fallers were InterContinental Hotels down 43p at 1370p, Persimmon off 35p at 1319p, Enterprise Inns down 18p at 720.5p and Segro off 17p at 700p.