LONDON (AFP) - Leading shares closed flat, with the FTSE 100 index having reverberated around the 4,700 level all session finishing nearer highs than lows thanks to strength in oils and financial issues, while New York put in a weak morning performance, consolidating after recent gains, dealers said.
At the close, the FTSE 100 index was 0.8 points easier at 4,706.3, below the opening peak of 4,713.4, but above the morning low of 4,689.2.
The broader FTSE indices were mixed, with the FTSE All Share and Small Cap indices higher.
Volume was average with 2.757 billion shares changing hands in 202,569 deals.
On Wall Street, by London's close, the Dow Jones Industrial Average modestly extended Tuesday's profit-taking decline, losing 11.40 points to 10,166.30, while the Nasdaq composite index shed 5.88 points to 1,949.62 after posting its sixth straight gain in a row on Tuesday.
US stocks eased back as a batch of profit warnings from the likes of Delphi and Credence Systems prompted investors to consolidate recent gains ahead of Friday's key US jobs report.
Fresh strength in US oil futures, which broke through the 51 US dollars a barrel level today, also had an impact amid ongoing supply concerns, with reports of a stalling of talks in Nigeria offsetting a rise in US inventories.
The US Energy Department said crude supplies were up 1.1 million barrels at 274 million barrels for the week ended October 1, while gasoline stocks rose by 600,000 barrels to total 199.4 million barrels.
Strength in heavyweight oil issues thanks to the crude price gains provided underlying support for British blue chips, with BP up 7-1/2 pence to 556-1/2 and Shell ahead 3 pence at 421-1/4.
BP was further boosted by news it bought back 3 million shares, and this week's in-line third quarter trading update.
Elsewhere, Man Group was the biggest FTSE 100 riser, jumping 75 pence higher to 1,371 on the back of ongoing bid hopes and with news of an upgrade in rating by Bear Stearns.
Talk circulated again that Merrill Lynch is poised to make a bid after press reports earlier in the week it had been contacted by a large US institution.
And Man shares were further boosted by an upgrade to 'peer perform' from 'underperform' by Bear Stearns, with the US broker citing valuation factors.
Other financial blue chips moved higher in tandem with Man Group's advance and with the recent rise in equity market valuations -- Amvescap firmed 6-1/2 pence to 318-1/2, and 3i Group -- the day's second biggest riser -- firmed 15-1/2 pence to 613.
But on the downside, AstraZeneca was the biggest blue chip faller, shedding 69 pence to 2,214 as investors expressed disappointment with the group's business review trading update.
The drugs giant confirmed it remains on track to deliver EPS "around the middle" of 2.00-2.15 US dollars range for 2004, but some dealers had hoped for a slightly higher EPS target, and noted that the uncertainty over AstraZeneca's anti-clotting drug Exanta outweighed a confident outlook statement.
In reaction to the news, Commerzbank Securities downgraded its stance for AstraZeneca to 'underweight' from 'equal-weight', and reduced its target price to 2,000 pence from 2,500.
Other drug blue chips suffered in sympathy, with GlaxoSmithKline losing 14 pence to 1,199, while Shire Pharmaceuticals shed 6-1/2 pence to 525-1/2.
Also on the downside with blue chips, Compass Group shares dropped 6-1/2 pence lower to 216-3/4 after French peer Sodexho Alliance said it has not yet seen any recovery for its North American activities in the Business and Industry segments, one of the group's key business areas in the US.
During a conference call following this morning's release of fiscal full year sales to Aug 2004, Sodexho's CEO Landel said clients may continue to close facilities over the coming months, which could lead to lower sales.
Building and plumbing materials supplier Wolseley plc was the second biggest faller, losing 2.98 percent to end the session at 927 pence.
Meanwhile, auto part manufacturers were knocked by Delphi's overnight cut in its earnings outlook for the third quarter, citing higher raw material prices and increased production costs.
Cheuvreux pointed out that Delphi's warning has a read across for GKN, Tomkins and Pilkington.
Blue chip Tomkins fell 5 pence to 270, while on the second line Pilkington shares lost 4-1/4 pence to 89-1/4, while GKN shed 5 pence to 220.
GKN was also knocked by Deutsche Bank cutting its price target to 220 pence on steel price pressures.
Telecom giant Vodafone was once again the most popular stock, with 252 million shares changing hands.
Traders also scrambled to exchange shares in BP, with 123 million transactions taking place.