THE end of America's massive six-year stimulus drive and eye-catching US growth figures dominated a jittery FTSE 100 Index.
Investors have been relaxed about the winding up of the lengthy US quantitative easing programme but are sensitive to any comments from the Federal Reserve that point to higher borrowing costs.
This came as US GDP growth figures that were initially seen as robust, but less so on closer inspection, led to wide fluctuations on the FTSE 100 before the index closed up just 9.7 points at 6463.6.
The world's largest economy expanded at an annual rate of 3.5 per cent in the three months to September, but a closer reading revealed that US government defence spending had surged during the period. This left sterling still slightly higher than the dollar, at 1.60, as traders bet that the Bank of England will hike rates before the Fed.
The pound was also up against the euro, at 1.27.
Among the big fallers in London, Randgold Resources fell six per cent or 242p to 3779p, silver miner Fresnillo lost 32.5p to 716.5p and Anglo American dipped 32p to 1320.5p.
BT shares were two per cent lower after it reported lower net retail broadband customer additions than in previous quarters.
Shares in BT, which posted a 13 per cent rise in quarterly profits to £690 million for the second quarter to the end of September, fell 7.6p to 367.9p.
Barclays was among the risers in the top flight as investors welcomed better-than-expected third quarter results, even though the bank was forced to take a £500 million provision to cover potential fines for the alleged rigging of foreign exchange markets.
Shares rose 2.05p to 222.55p after adjusted pre-tax profits excluding the costs of its restructuring programme improved 29 per cent to £1.92 billion.
Rival bank HSBC, which is due to report figures on Monday, was also 1.1p higher at 629.1p and Royal Bank of Scotland lifted 5.5p to 365.3p.
RBS is expected to announce how much it has set aside to cover potential fines for manipulating currency markets when it reports third-quarter results today.
Coach operator National Express set the pace in the FTSE 250 Index as profits in the third quarter were nearly 15 per cent higher than the same period last year, continuing the "strong progress" seen in recent months.
Shares lifted 11p to 246.2p after the group benefited from foreign contract wins and improved passenger figures for its UK rail, coach and bus services.
The biggest risers on the FTSE 100 Index were St James's Place up 24.5p at 712.5p, Smith & Nephew up 36p at 1054p, Friends Life up 8p at 313.8p and Mondi up 24p at 1037p. The biggest fallers were Randgold Resources down 242p at 3779p, Standard Chartered down 48.5p at 943.6p, Fresnillo down 32.5p at 716.5p and Anglo American down 32p at 1320.5p.
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