Investors experienced a rollercoaster ride on the London market yesterday after a Wall Street-fuelled rally helped overturn earlier 60 point losses.

Better-than-expected consumer confidence figures in the US sent the Dow Jones Industrial Average 100 points higher by the time of London's close and corrected a gloomy start to the week for City traders.

By the final bell, the Footsie stood 12.6 points higher at 3992.4 after briefly nudging above the 4000 barrier in late trading.

The mood had been very different earlier in the day as investors across Europe took fright at the possible impact of the declining US dollar on corporate earnings. The later turnaround was reflected across European markets.

Retailer GUS, owner of Argos and Homebase stores, led the Footsie risers board after announcing the sale of its home shopping businesses to the millionaire Barclay brothers for £590m.

Shares gained six per cent or 35.25p to 628p as investors welcomed a sale that will help the retailer pay off some of its debts.

Support services firm Capita, responsible for London's jam-busting congestion charging scheme, was another strong performer - up 3.75p at 227p - after announcing details of a share buy-back.

However, telecoms stocks were under pressure despite annual results ahead of expectations from mobile phone company Vodafone.

The market heavyweight initially opened ahead but slipped back to 3p lower at 122.5p as analysts raised concerns about future growth prospects.

Vodafone, which unveiled a 36 per cent rise in underlying profits to £8.43bn, was joined on the way down by rival mmO2, off 2p at 57.75p.

Cable & Wireless was caught up in the telecoms sell-off - down 2p to 91.75p despite announcing further changes to its board, including the addition of former Orange director Graham Howe as a non-executive director.

Media stocks recovered from an earlier pounding but still closed lower with information group Reuters slipping 0.75p to 174p, Financial Times owner Pearson losing 2p to 531.75p and Daily Mail & General Trust off 2p at 589p.

Broadcasters BSkyB also shed 12.5p to 645 but merger partners Carlton and Granada rose 0.5p and 2.75p to 125p and 83p respectively.