Further signs of gloom on the UK high street emerged today with a report showing the number of retailers reporting downbeat trading hit its highest level in two years in the last three months of 2007.

London’s leading share index dipped into the red today after a day of heightened volatility following the Bank of England’s move to cut interest rates.

The London market surged through the 6500 barrier today as a better-than-expected trading update from Royal Bank of Scotland and hopes of an interest rate cut drove blue chips higher.

Soaring sales of novelty socks and other Christmas stocking favourites helped UK retailer John Lewis offer some welcome cheer in the retail sector today.

Bay Trading owner Alexon today added its name to the growing list of retailers feeling the pressure from the slide in consumer confidence.

Troubled bank Northern Rock endured another rollercoaster day on the London market today on the back of further sale speculation.

A shortened trading week will see Halfords and Mothercare publish updates, while publisher Bloomsbury will look to restore confidence after its profits warning in December.

Loss-making shoe retailer Dolcis was sold today for a fraction of the price its owner paid for the business seven years ago.

Fashion retailer Alexon reported lower profits today following disappointing performances from its Dolcis footwear and Envy menswear businesses.