CLOTHING retailers have fallen out of fashion as high street store Next warned of the impact of the sunny autumn weather on sales of jumpers and coats.
Next's warning that it will have to downgrade profit forecasts if the fine weather continues into October came as a blow to the sector in a session when the FTSE 100 Index fell 23.9 points to 6622.7.
Elsewhere, markets were higher as a slump in eurozone inflation to 0.3 per cent boosted expectations of further stimulus measures from the European Central Bank.
Germany's Dax and France's Cac 40 both climbed, while in New York the Dow Jones Industrial Average was also ahead at the time of the close in London.
On currency markets, the pound was stronger against a weakening euro, at 1.28 euros, after new figures showed the UK economy grew by 0.9 per cent in the second quarter rather than 0.8 per cent as first thought. However, sterling was down against a resurgent greenback to stand at 1.62 US dollars.
In the FTSE 100, Royal Bank of Scotland was one of the biggest risers after it surprised the City with a better than expected trading update.
RBS said it has cut the amount of money it is setting aside to cover bad loans after the economic recovery in the UK and Ireland boosted Ulster Bank and RBS Capital Resolution, which contains the bank's troublesome assets.
Shares rose almost two per cent or 6.8p to 368.2p, while Lloyds Banking Group, which is also part owned by the taxpayer, lifted 0.4p to 76.9p and Barclays added 1.5p to 227.5p.
Next was the biggest faller in the top flight - off almost four per cent or 260p to 6605p - after its warning that sales are currently up six per cent in the quarter to the end of October, rather than the 10 per cent previously forecast for the period.
It said that if conditions continue for the full duration of October it is likely to lower its full-year profit guidance of £775 million to £815m.
M&S shares were 10.8p lower at 404.6p while Debenhams fell more than two per cent or 1.6p to 58.3p in the FTSE 250 Index.
Associated British Foods, which owns Primark, was the strongest riser in the top flight as its shares surged 116p to 2679p after benefiting from a broker upgrade by Credit Suisse.
In corporate news, Saga was still some way below its flotation price of 185p after results from the over 50s travel and financial services group showed a fall in half-year pre-tax profits of 64 per cent to £32.8m.
The biggest risers in the FTSE 100 Index were easyJet up 42p at 1423p, Intertek Group up 54p at 2612p and Royal Bank of Scotland.
The biggest fallers in the FTSE 100 Index were Next, then Prudential down 38.5p at 1376p, Marks & Spencer and Sports Direct International down 15.5p at 618.5p.
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