Britain's FTSE 100 share index drifted in midsession trading as data showing British economic growth was slower than previously thought.
On a day of limited company news, aerospace company Rolls-Royce retreated on negative analyst comments, but drugs giant GlaxoSmithKline rose after taking legal action against a generic drug competitor in the United States.
By 11.30 a.m., the FTSE 100 was down 2.7 points at 4,432, to trim yesterday’s 70-point rise, after bouncing around between 4,403 and 4,455 points.
Data showing second quarter gross domestic product growth was slower than previously estimated provided further evidence that economic recovery remains brittle, although the revision came in as expected by economists.
A slump in industrial output helped drag second quarter GDP growth down to 0.6 per cent, down from an initial estimate of 0.9 per cent.
Rolls-Royce pulled back from yesterday’s rally and was down 2.4 per cent after investment banks Morgan Stanley and Schroder Salomon Smith Barney both cut their price targets on the stock following first-half results.
But there were few trends across sectors. Banks and telecoms stocks were generally weaker, countered by gains among pharmaceuticals.
Dealers said a lethargic mood was compounded by the closure of UK markets for a holiday on Monday. Volume was low at 275 million shares.
GlaxoSmithKline added 2.1 per cent after it said it was taking legal action in the US to bar Novartis from importing its generic versions of Augmentin.
Mid-cap infrastructure services company Jarvis bounced four per cent after its 13 per cent tumble, when it was hit by news fraud police had arrested Mr Colin Skellett, the head of utility Wessex Water and also non-executive chairman of Jarvis, on suspicion of accepting an illegal payment of nearly a million pounds during Wessex Water's takeover by Malaysian energy firm YTL Power earlier this year.
FTSE 100 services company Hays added 4 per cent, as dealers said it was helped by comments from Deutsche Bank earlier this week saying the stock could be re-rated if it appoints a respected chief executive, makes disposals or has a re-rating of its staffing assets.