FTSE closes at highest for two years but falls back today

The FTSE 100 closed at its highest level since 2008 last night but has fallen back in today's trading following late weakness in the US.

Despite closing at its highest level since 2008 last night at 5891.21, the FTSE fell 20.40 points or 0.38% to 5868.64 in early morning trade.

Better than expected retail sales in the US as well as positive company updates helped boost the UK's blue chip index yesterday. However, the Dow Jones fell back to close at 11,476.54, after a surge in early trade.  

The Federal Reserve also renewed its commitment to its $600bn asset purchase scheme and kept rates on hold, although it upgraded its view of the US economy.

In the UK, Barclays suffered a blow today, falling 2.11% to 266.25p, while British Airways dropped 1.51% to 273.80p and United Utilities Group fell 1.67% to 588.00p.

Meanwhile, Capital Shopping Centres Group emerged as this morning's winner, up 3.71% to 411.00p.

Rexam was up 1.96% to 317.00p, Hammerson rose 1.33% to 420.00p, Pearson jumped 1.10% to 1009.00p, and Land Securities Group was up 0.75% to 672.50p.

In Asia, the Nikkei closed down 0.07% at 10,309.78.