LONDON'S benchmark FTSE 100 Index failed to cement early gains as top flight shares limped across the finishing line at close of trading.

After breaking through the key 4200 point mark at lunchtime, the Footsie was in retreat by the end of the day with little in the way of corporate news to keep share prices higher.

The blue-chip Footsie eventually closed up 8.9 points at 4185.6 as investors preferred to watch from the sidelines.

Surprise figures showing an unexpected rise in UK inflation during July failed to have a significant influence on investors.

With many dealers away on holiday, trading volumes were light. Those at work appeared content to wait for news of an interest rates decision from the US Federal Reserve which could have a bearing on tomorrow's session.

In London, retail group Dixons surrendered its prominent place on the Footsie risers board after spending much of the day on top. The shares finished the day with a 3p gain to 131p, continuing Monday's strong progress.

Leading the pack by the close of trading was beverage and bottling company Rexam, up 16p to 431p, with Schroders NV close behind with a 22p gain to 602p.

A number of financial stocks also handed back earlier gains with Abbey National down 3p to 546p, rival HBOS off 9p at 745p and Legal & General down p at 98p. Those to hold on to gains included Barclays, up 6p at 491p, HSBC up 10p at 787p and Alliance & Leicester ahead 13p at 909p.

On the downside, broadcaster BSkyB - the only major company reporting results in London - failed to kick ahead despite strong full-year figures.

Shares, which have enjoyed a recent strong run, slipped 15p to 709p.

Elsewhere, brewing firm Scottish and Newcastle was the biggest faller of the day.

Shares in the group, which includes Kronenbourg in its portfolio, dipped 13p to 388p after analysts at Dutch investment bank ABN Amro downgraded the company, saying its stock looked expensive.

Phone group BT also fell, losing 4p to 191p, after announcing it was slashing the price of calling abroad. But BT's former mobile subsidiary mmO2 rose after analysts at Nomura upgraded the stock. Shares climbed p to 54p.

Outside the Footsie, intellectual property group Hit Entertainment - which owns the rights to Bob the Builder - fell another 13p to 256p.