London equities markets moved lower on Thursday, in line with falls on Wall Street indices overnight as news of faltering growth in the US manufacturing sector damped sentiment.

The FTSE 100 started the day 0.4 per cent weaker at 6,222.2, a decline of 27 points. The mid-cap FTSE 250 lost 36 points, also about 0.4 per cent, to 10,372.9.

Overnight in New York, the Dow Jones Industrial Average closed 49 points lower at 12,031.0 after the Institute of Supply Management's manufacturing index came in weaker than forecast.

The broader S&P 500 index fell further, losing 0.7 per cent to 1,367.8.

Amvescap, the London-listed fund manager highly exposed to US markets, saw its stock fall furthest on expectations of further pressure on New York indices. Amvescap was 1.6 per cent weaker at 592p.

ICI fell 1.8 per cent to 388¼p after the speciality chemicals maker warned of continuing cost inflation, despite lower oil prices. Adjusted third-quarter profit before tax rose 10 per cent to £144m.

Miners gave ground after a strong showing during the previous session. Vedanta Resources fell 1.5 per cent to £14.67, Rio Tinto was 1.4 per cent weaker at £29.30 and Kazakhmys lost 1.2 per cent to £12.03.

On the upside, news of fresh capital return plans at Unilever, the Anglo-Dutch consumer goods company, sent its shares 3.1 per cent higher to £13.34. The maker of Ben & Jerry's ice cream and Domestos bleach said it would replace its planned 2006 EU500m share buyback with a EU750m special dividend. It also unveiled plans for a EU1.5bn share buyback in 2007.

Strong gas prices sent year-to-date revenue at BG Group up by 51 per cent to £3.6bn by the end of the third quarter, helping it grow profits by 45 per cent to £851m. The shares rose 1.3 per cent to 682½p.

Lower down the market, Carphone Warehouse rang up gains after it said was in talks with Vodafone to reach a fresh European sales agreement. The retailer's shares were 0.7 per cent stronger at 196¾p.

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