Shares in London managed their fourth consecutive daily rise but the rally showed signs of running out of steam, as investors nervously awaited today's US employment data.

The FTSE 100 index closed 14.4 higher at 4,991.3 after recovering from an early setback which took the market's leading benchmark down 28.2 to 4,948.7. Shares were lifted by some subdued economic data in the morning and by a late futures-inspired rally in the afternoon.

The Confederation of British Industry's distributive trades survey found that the number of retailers reporting higher sales fell sharply in August. "The report was weaker than expected and should reassure the markets that the windfall effect on high street activity is not too dramatic," said Mr Simon Briscoe, UK economist at Nikko Europe.

A slowdown in the rate of Dixons' sales growth (which sent the shares lower) allied to weak new housing figures reinforced the feeling that the consumer boom might be slowing, and that further interest rate rises would not be needed.

However, the record level of August car sales went against the trend of the other data.

Sterling showed some initial weakness on the back of the economic figures, helping the export-related stocks, although, in fact, sterling recovered to finish higher on the day.

Some renewed weakness in the Far Eastern markets, together with reports of an investigation by the Manila regulatory authorities, took their toll on Standard Chartered, Footsie's worst performer.

One leading market-maker said: "We are getting closer and closer to the market top, with the Far Eastern turmoil a real worry."

Equities received little guidance from gilts, with the benchmark 10year issue closing virtually unchanged.

The stock market's rise was broadly-based, with the FTSE 250 index gaining 17.1 to 4,663.6 and the SmallCap index up 3.9 to 2,261.4. The latter index is well below its all-time high of 2,374.2.

Volume was modest, with 749.1 million shares traded by the 6 p.m. count, of which 52 per cent was in non-Footsie stocks.