MIXED signals on the global economy ensured blue-chip shares came under pressure as the FTSE 100 Index gave up some of its recent gains.

Weak Chinese industrial data weighed on investor sentiment after figures from the world's second biggest economy showed manufacturing activity fell to a six month low for November.

And fears that Europe is about to fall back into recession were fuelled when Markit said its gauge of business activity fell to a 16 month low of 51.4 in November from 52.1 in October.

Investors were spooked by the updates, leading to falls of more than 2 per cent for a number of mining stocks as the FTSE 100 Index dipped by as much as 50 points at one stage before finishing 17.7 points lower at 6,678.9.

The late recovery reflected some better economic news in the United States.

In contrast to the stagnation in Europe, the UK economy continues to show promise after official figures revealed a bigger-than-expected jump in retail sales of 0.8 per cent last month.

Much of the improvement was due to increased consumer demand driven by the impact of falling prices.

The pound was slightly higher against the Euro at 1.25 but was flat against the US dollar at 1.57 after the minutes of the latest Federal Reserve meeting reminded traders that monetary policy in the US is on a path to tightening.

In stocks, better-than-expected half-year results helped sustainable technologies firm Johnson Matthey to the top of the FTSE 100 risers' board.

Pre-tax profits for the six months to September 30 were up three per cent to £207.8 million while sales excluding precious metals rose by two per cent. Chief executive Robert MacLeod said he expected good underlying growth for the second half. Shares rose six per cent, or 189p, to 3,341p.

Johnson was joined by Babcock International after the engineering support services company reported a 32 per cent rise in half-year profits to £187 million. Its order book has also grown by more than 50 per cent to £18.5 billion. Its shares lifted 66p to 1,184p.

British Gas owner Centrica was 4.7p lower at 293.9p after warning that earnings per share would be lower for the year partly because of the mild winter knocking £100 off average dual fuel bills.

Meanwhile, state-backed Royal Bank of Scotland was little moved by the long-expected announcement of £56m in UK regulatory fines over its IT meltdown in 2012. Shares fell 3.2p to 380.6p.

The biggest FTSE 100 risers were Johnson Matthey up 189p at 3,341p, Babcock International ahead 66p at 1,184p, Petrofac up 31p at 1,178p and TUI Travel ahead 10.5p at 427.1p.

The biggest fallers were Rio Tinto down 77p at 2,865p, BHP Billiton off 42.5p at 1,582.5p, National Grid down 24.5p at 936p and Sports Direct International off 15.5p at 638p.