The FTSE 100 Index was hit by a second late sell-off to fall to its lowest level of the year today amid fears over the latest bank crackdown from President Obama.

The FTSE 100 Index slipped more than 1% by noon today as weakness in banking stocks offset one of the London market's biggest takeover deals of recent times.

Disappointing news on the US economy dampened the London market's recovery today in the wake of yesterday's near-2% rise.

The London market capped its tenth consecutive day of gains today after investors pushed ahead with the strongest rally for the market in more than five years.

A consumer group called on Thames Water to share its success with customers after it reported a 34% rise in annual profits to £590.1m (€742m) today.

Water company Severn Trent today reported a fall in profits as it counted the cost of a record fine from Ofwat and the impact of last summer’s flooding.

The London market dropped back below the 6000 barrier today as concerns over house prices brought the recent rally to an end.

UK company Southern Water has been fined £20.3m (€26.8m) for poor service and deliberately misreporting information, Ofwat said today.

Severn Trent today said costs associated with the summer’s flooding crisis washed away profits growth in the first half of its financial year.

ALMOST €19 million has been spent by the Commission for Energy Regulation on consultants in the last four years.

Thames Water could be fined £12.5m (€17.8m) for reporting and customer service failings under proposals announced by water services watchdog Ofwat today.

Fears were growing tonight that homeowners will ultimately be faced with stinging rises in water bills to cover the costs of increasing Britain’s flood protection.

United Utilities was hit with an £8.5m (€12.6m) fine today after the water regulator found the firm broke trading rules.

Severn Trent said today it planned to cut 600 jobs from its water business over the next five years – equivalent to 10% of its workforce.

The London market surrendered its early gains today as losses at United Utilities took the shine off an impressive display at BT.

Yorkshire Water owner Kelda posted a 10.6% rise in profits today after an inflation-busting increase in household water bills.

Mining stocks led the FTSE 100 Index into the red today as investors banked profits following yesterday’s strong gains.

A positive performance by oil stocks helped to keep the London market in the black today.

London shares were hovering around their opening mark today after oil prices resumed their upward trend.

Water companies buoyed the FTSE 100 Index today after regulator Ofwat signalled price rises at the top end of industry expectations.

Utility firms lifted the FTSE 100 Index back into positive territory today after the UK regulator Ofwat allowed them to raise water bills by more than originally proposed.

UK water group Severn Trent said an undisclosed number of staff were at the centre of disciplinary proceedings today following the outcome of a wider investigation into allegations of false accounting.

A downbeat start to trading in New York meant the London market only scraped its way to a positive close today.

Shares in British construction group Alfred McAlpine tumbled 7% today after half-year results were affected by less work from utilities firms.

Water utility group Kelda hailed the success of its Yorkshire Water business today as it posted a 9.4% rise in profits.

Companies in the telecoms and energy sectors will be among UK market heavyweights updating investors on their progress this week.

The FTSE 100 index has made early gains to stand up 25.8 points at 4234.9 by mid-morning.