FTSE 100 rally comes to swift end

The strong start to the week for the FTSE 100 Index failed to last today as investors succumbed to more jitters over US monetary policy.

With the Federal Reserve beginning its two-day meeting later in the session, London's top flight surrendered some of Monday's 82 point improvement to stand 27.3 points lower at 6495.1.

The decline reflected more uncertainty about whether policymakers will hold off from engaging in a pre-Christmas pull back of the current package of support for the US economy.

Defensive stocks were in favour in London, with United Utilities at the top of the FTSE 100 risers board after a gain of 9p to 672p.

Miners were under pressure as BHP Billiton fell 19.75p to 1773.25p and Anglo American dipped 22p to 1271.5p.

Car insurer Admiral was near the top of the fallers board after the Competition Commission pledged a shake up of the motor insurance market.

As well as looking at the costs of replacement cars and repairs, it is concerned about contracts between price comparison websites and insurers. Admiral, which owns Confused.com, fell 23p to 1238p.

PC World and Currys owner Dixons Retail fell 2 per cent, or 1.1p, to 50.1p in the FTSE 250 Index after it reported a big jump in half-year UK profits.

Despite the fall, shares have more than quadrupled in the past two years.