Evidence that US consumers are becoming more confident helped keep London shares above the key 4500 support level yesterday.

The FTSE 100 Index was able to reverse much of its early losses to close down 6.3 at 4512.4 in the wake of better than expected US consumer confidence data.

Wall Street also gained ground on the news and ahead of today's decision on US interest rates, with the Dow Jones Industrial Average climbing nearly 40 points in early trading.

The Fed is expected to raise rates by a 0.25 per cent for the first time in four years.

But analysts warned that a sudden appetite among households for higher spending could lead the US Federal Reserve to raise rates more aggressively in future.

Mining stocks and financial companies were among those dragging the Footsie steadily lower throughout the session in London.

Anglo American was the fourth heaviest faller, down nearly two per cent, or 19p, to 1138p. Antofagasta fell 14p to 951p, while Rio Tinto was down 15p to 1321p.

However, the aviation sector was doing its best to limit the turbulence in the market, with British Airways prominent on the risers board.

Shares improved two per cent, or 6p, to 278p following a sharp fall in oil prices and news that international air traffic surged by almost a fifth between January and last month compared with the same period last year.

Speculation that China Airlines of Taiwan is considering an order for the Airbus A380 superjumbo helped to make BAE Systems the day's biggest winner. The stock also benefited from an upgrade by UBS to improve four per cent, or 8p, to 218p. Rolls-Royce, which could make the engines for the jets, rose one per cent, or 2p, to 249p.

Outside the top flight, budget airline easyJet moved higher, up p to 156p.

Oil company BP was another blue-chip stock to make gains after upgrading its accessible reserves by 23 million barrels.

The restatement lifted shares by 3p to 494p and comes the day after Shell found itself under pressure from investors over its reserves crisis earlier this year. Shell shares fell 4p to 412p.

Elsewhere, retailers were experiencing mixed fortunes, with floorings specialist Carpetright ahead five per cent, or 46p, to 1021p, after reporting a 33 per cent rise in annual profits.

But French Connection fell six per cent, or 29p, to 430p, after founder and chairman Stephen Marks moved to reduce his stake in the high street retailer.

Holiday park operator Parkdean Holidays was also in the red, down nearly four per cent, or 9p, to 220p, after reporting that losses had risen to £5.6m during the six months to April 30