FTSE 100 down amid energy market turbulence
London's premier index ended the day in the red, as commodity stocks failed to recover losses despite a oil price bounce-back.
The FTSE 100 Index closed lower by 0.1% or 8.5 points at 7,439.29, with oil majors and mining stocks facing pressure amid continued concerns about the global energy supply glut.
Brent crude prices started off the day down 0.2% at seven-month lows of just over 44 US dollars per barrel, before rebounding by 1.7% to 45.45 US dollars per barrel.
But commodity stocks failed to gain the same momentum, with both BP and Royal Dutch Shell's 'B' shares ending the day flat at 456.75p and 2,097.5p, respectively.
David Madden, a market analyst at CMC Markets UK, said: "The turbulence in the energy market is weighing on investor sentiment. Oil has dropped a substantial amount since March and dealers are worried it could diminish inflation and growth prospects.
"Disinflation is the last thing traders want to see, and while oil remains relatively low it will chip away at investor confidence."
Across Europe, the French Cac 40 and Germany's Dax both ended the day up 0.15%.
In currency markets, sterling failed to build on gains in the previous session when the UK currency was boosted by the prospect of a future rate hike from the Bank of England after its chief economist said he could support a rise by year-end if the economy shows signs of strength.
The pound was down 0.1% against the US dollar at 1.265 but was flat versus the euro at 1.135.
Investors were also digesting survey data from the CBI which showed that manufacturers are enjoying their strongest pipeline of orders for nearly 30 years as the weak pound helps boost demand for "Made in Britain" goods.
In UK stocks, GlaxoSmithKline shares jumped 39p to 1,722p after the drugs giant was handed 235 million US dollars (£186 million) in a court case linked to the patent for blood pressure medicine Coreg.
Standard Life edged lower by 2.5p to 389.7p and Aberdeen Asset Management was down 0.3p to 293.6p despite the competition's watchdog waving through their £11 billion mega merger, deeming an in-depth investigation unnecessary.
British microchip maker Imagination Technologies soared 20.25p to 143.75p after saying that it had received interest from a number of parties after putting itself up for sale.
Hornby shares fell 0.13p to 32.25p after the model toymaker said that a a takeover bid launched by Phoenix Asset Management - which put a price tag of £27.4 million on the company - "significantly undervalues" the company.
The biggest risers on the FTSE 100 were Shire up 166p to 4,626p, Provident Financial up 86p to 2,447p, Convatec Group up 7.7p to 335.4p, and GlaxoSmithKline up 39p to 1,722p.
The biggest fallers on the FTSE 100 were United Utilities Group down 39.5p to 898.5p, Morrison Supermarkets down 6.7p to 241p, TUI down 25p to 1,126p, and Johnson Matthey down 64p to 2,938p.