THE London market closed down 25.4 points at 6348.8, ending two days of gains, while markets across Europe also lost steam amid doubts about how long the US will continue pumping money into its economy.

Fallers in London included most of the major players from the insurance sector, with Asia-facing Prudential down 19p at 1068p, Standard Life 5.8p cheaper at 369.4p and Legal and General down 1.5p at 171.1p BT shares were under pressure as it announced chief executive Ian Livingston will stand down in September. He will be replaced by Gavin Patterson.

Shares were down four per cent following the surprise announcement, but regained some losses to close down 5.6p at 313.7p.

Andrew Hogley, telecoms analyst at Espirito Santo Investment Bank, said: “The pressure will now be on Mr Patterson to deliver the cost-cutting that Mr Livingston set out, but also the TV strategy which is as yet untested”.

An escalating row with rival BSkyB did little to help sentiment in the group, as watchdog Ofcom started a probe into BSkyB’s alleged refusal to share its Sky Sports channels with BT on fair terms.

Water companies Severn Trent and United Utilities were off 69p at 1696p and 34.5p at 692p respectively, as a result of trading without the right to their latest dividend payments.

On the risers board, supermarket stocks fared well with Tesco ahead 8.7p to 344.6p, Sainsbury’s up 3.8p to 376.5p and Morrisons 2.7p stronger to 267.4p.

JD Sports Fashion lost ground despite reporting a robust seven per cent rise in underlying sales growth in its core business for the 18 weeks to June 8. The performance was offset by its warning of another big full-year loss at its Blacks and Millets outdoor division.

JD’s shares dipped 3p to 887p.