Fresh retail misery gave investors an excuse to bank profits yesterday, leaving the London market in the red for the second session in a row.

Marks & Spencer and B&Q owner Kingfisher were prominent blue-chip fallers after the British Retail Consortium said sales fell to their lowest level for ten years last month.

A pick-up in oil prices added to the jitters over the economy and contributed to the FTSE 100 Index closing 17.9 points lower at 4892.4.

Analysts said today's release of the Bank of England's quarterly inflation report would help to set the agenda for traders, but its content could send mixed signals for UK stocks.

Jimmy Yates, a trader with deal4free.com, said a fall in inflation in line with the retail sales figures would raise fears of a recession.

But he said: "Any indication that the inflation number is set to rise from last month's 1.9 per cent starts to pave the way for another jump in interest rates. Either way, the outlook for UK equities doesn't look too great."

Weak sentiment was also evident across the Atlantic where the Dow Jones Industrial Average lost 67 points in early trading on a slow day for economic news there.

In London, the Footsie fallers board was littered with famous names from the retail sector, led by Kingfisher - off 8p at 258.5p - and Marks & Spencer, down 8.75p at 321.75p. Boots fell 4.5p to 590p.

The signs of weaker spending affected the banking sector, with Lloyds TSB down 4p at 463.5p, Barclays off 11.5p at 542.5p and HSBC 2.5p lower at 857p.

Analysts said the presence of so many "safe" sectors in the top flight risers board gave some indication of the cautious appetite of investors for risk.

Shares in Centrica ticked up 3.5p to 225p, while other utility companies helping drive the market higher yesterday included Scottish Power - ahead 6.5p at 430.75p and International Power 0.5p higher at 188p.

British Gas owner Centrica continued to advance after cheering investors yesterday with news that it was not willing to hold customer bills in the face of higher wholesale gas prices and at the expense of margins.

The mood in the sector was helped by first quarter results from exploration company BG Group, which said soaring oil and gas prices and volumes had helped it to a 44 per cent rise in profits. BG shares improved 1.5p to 420p.

But IT group Sage led the way, gaining 2.5p to 202p after half-year software sales improved to £144.6m in the period from £122.4m.

Elsewhere, photography specialist Jessops lost 2.75p to 85p, despite reporting some signs of an improvement in trading following its shock profits warning in mid-March.

Ports and shipping group P&O was a riser outside the top flight - up four per cent, or 10.25p, to 277.25p - on confirmation that container transporter Royal P&O Nedlloyd was in takeover talks with rival Maersk.