LONDON (AFP) - Leading shares closed in negative ground, while Wall Street was looking for direction over mixed data on the state of the US economy, dealers said.
The FTSE 100 ended down 18.6 points at 4,624.2, while the broader indices closed on a mixed note.
Volumes increased in late trading, with 2.011 billion shares changing hands in 201,122 deals.
Vodafone was the most traded stock, with 239 million shares being exchanged, followed by BP which saw 115 million issues switch owners.
WM Morrison Supermarkets jumped 2.03 percent to 226-1/2 to top the leaderboard, boosted by market talk of an upbeat broker lunch.
BSkyB was the day's second biggest gainer, adding 1.75 percent to close on 508-1/2 pence per share.
On the down side, Daily Mail and General Trust was the day's biggest loser, shedding 1.90 percent to 724.5, followed by Barclays which lost 1.85 percent to close at 532 pence.
On Wall Street, indices edged lower at the European close, as a disappointing reading on third-quarter US economic growth offset improved consumer sentiment in October.
In some of the final economic news to hit the tape before the November 2 presidential election, the Commerce Department reported that GDP at a less-than-expected 3.7 percent annual rate in the third quarter, after growing 3.3 percent in the second quarter.
Economists were expecting gross domestic product to grow 4.3 percent. The core inflation rate increased 0.7 percent annually, the lowest in 42 years.
However, the University of Michigan said its consumer sentiment index improved to 91.7 in late October from 87.5 earlier in the month. Economists were expecting a decrease to about 85.0 in late October.
And a survey of purchasing managers showed stronger-than-anticipated expansion of business activity in the Chicago region in October.
At the European close, the DJIA was down 0.60 points to 1,0004.0, and the Nasdaq Composite Index shed 8.56 points to 1,967.7.
In London, negative broker comments provided most of the downside.
Barclays dropped 10 pence after CSFB made bearish comments on the stock in a downbeat note to clients on the British banking sector.
Yell also closed lower, hit by negative comments from Cazenove ahead of the media group's interim figures on November 9.
The broker repeated its 'underperform' recommendation, arguing that it is concerned that the shares could de-rate going into the regulatory review next Spring, when the OFT will review the RPI-6 percent pricing regime Yell currently lives very successfully with.
Yell shares closed 6-1/2 pence at 366.
WPP shed seven pence to 546-1/2 after Citigroup Smith Barney advised switching out of the media group into Publicis.
Elsewhere among the fallers, Amvescap ended 3-3/4 pence lower at 295, after rising over eight percent Thursday after upbeat Q3 numbers.
Gallaher lost 6-1/2 pence to 687-1/2 following the uneventful passing of Japan Tobacco's interim results in Tokyo this morning.
The Japanese cigarette giant was rumoured to be interested in acquiring Gallaher and investors had been hoping for some indication of a future move, traders noted.
ICI also finished in negative territory, down two pence at 209-1/2, as brokers continued to lower forecasts following Thursday's disappointing third quarter numbers.
CSFB reiterated its 'underperform' stance on the chemicals group, while Lehman Brothers repeated its 'underweight' recommendation.
Weakening oil prices also weighed on BP and Shell, which ended down two pence to 527-1/2, and down 6-3/4 pence to 428-3/4, respectively, partly due to profit taking after yesterday's robust results.
On the upside, WM Morrison Supermarkets jumped upwards and telecom shares were also in favour on positive broker comments.
Upbeat comments from ABN Amro lifted mmO2 1/4 pence higher to 105-1/4.
The Dutch broker raised its target on the mobile group to 135 pence from 115 and reiterated its 'buy' recommendation, arguing that the dynamics of the industry "are changing in ways not yet priced in by the market".
Vodafone meanwhile, added 1/2 pence to 139-1/2 after ABN reiterated its 'add' recommendation and raised its target to 155 pence from 140.
Elsewhere, British Airways closed up 3/4 pence to 215-3/4 on lower oil prices, although cautious comments on European airlines from Morgan Stanley limited gains.
Smith and Nephew was another gainer, up four pence to 462-1/2, remaining in demand ahead of next week's numbers and after upbeat results from US peer Zimmer earlier in the week.
10/29/2004 - 16:46 GMT - AFP