Retail stocks were once again to the fore today as continued fears over Iraq and the economy kept the bulk of investors on the sidelines.

Investors returning from the Christmas break were given a jolt today as the FTSE 100 Index tumbled to its lowest close since October 10.

TROUBLED defence contractor BAE Systems saw nearly £830 million wiped from its market value yesterday after taking yet another hammering in the City.

MINING groups dug the FTSE 100 Index out of a hole yesterday as London's blue-chips ran out of steam in a largely subdued end to the week.

The FTSE-100 Index closed in positive territory yesterday, but failed to break through the key 4,200 level.

THE FTSE 100 Index fell back from the key 4200 barrier yesterday after hovering close to a new two-month high for most of the day.

The FTSE 100 Index achieved its highest close for two months today after a rush of positive news provided investors with cause for cheer.

Optimistic investors pushed the FTSE 100 Index towards its highest level since September today, fuelling hopes for a strong end to the year in the City.

Share prices were higher in relatively quiet midday trade still on relief Iraq accepted the UN resolution on weapons inspections, dealers said.

ISEQ-listed Celtic Resources Holdings, which aims to become one of the largest gold producers in Russia and Kazakhstan by 2007, has reminded shareholders that the £3m Open Offer of 2,222,222 new shares following a 10:1 share consolidation closes at 3pm next Tuesday.

British Energy’s financial crisis highlights the problems facing the electricity industry – and raises question marks over the future of nuclear power in the UK.

FTSE 100 risers and fallers listed.

The FTSE-100 has closed down 42.2 at 5040.8 - its lowest close since February.

Britain’s biggest companies suffered a tortuous return from the bank holiday weekend today as the FTSE 100 Index was brought to its knees.

The FTSE 100 Index closed 14.2 points ahead at 5243.6 after a session most notable for subdued trading.

Strong sales and the end of distracting takeover talks are expected to boost Arcadia's interim results next Thursday.

The FTSE 100 Index is down 36.9 points at 5152.8 after an hour's trading, having dipped by 50 points early on as a host of blue-chips slipped into the red.

Grim news is expected when Marconi unveils its interim results next Tuesday.

Analysts will be looking at the long-term prospects of Vodafone when it reveals its interim results next Tuesday.

Analysts say Marks & Spencer will reveal a drop in profits of up to 20%, when its annual results are published on Tuesday.

Shell will be under the spotlight when it reports its results on Thursday, with motorists looking as keenly as investors to see if it has profited from high petrol prices.

The Bank of England has cut the base rate to 5.5% from 5.75%.

Leading shares in London closed just off their intra-day lows after another erratic performance, with weakness in financial and 'old economy' issues preying upon early gains in the technology, telecom and media sectors - still buoyed by strong pre-weekend gains on the Nasdaq - dealers said.