A typically subdued start to the trading week in London saw all the main indices finish a lack-lustre session on a quiet note as the impetus from Friday's rally petered out.

But it could have been a lot worse. Another volatile performance by Wall Street saw the Dow Jones Industrial Average push up strongly and post a 170-points gain before dipping off, after further evidence of a slowing in the US economy.

While the Dow was making progress, on the basis that US rates are now being seen as more likely to fall from current levels, the Nasdaq Composite continued to struggle and was down in excess of 50 points as London ended the day.

What was more worrying for London's traders was the fact that the Nasdaq finished Friday's session a long way off its best, eventually closing a net 47 points up having been more than 150 points better earlier in the day.

For a London market still transfixed by Wall Street, the worries about the current tech-led sell-off, proved the overwhelming influence, with dealers and marketmakers reluctant to adopt long positions in the market given their recent experiences with Sema and other tech stocks so fresh in the memory.

And those worries about tech stocks intensified again as the regular quarterly review of FTSE indices loomed up. The final decision on then ins and outs will be made today on the basis of last night's closing prices.

Among the favourites to drop out were Sema, the latest horror story in the tech stocks, and two of the `dream' stocks turned `nightmare' stocks, Bookham and Baltimore.