Britain's top share index fell for the fourth straight session on Friday, losing 1.2 percent, after U.S. conglomerate General Electric posted weaker quarterly results, adding to recession fears.
The FTSE 100 closed down 69.6 points at 5,895.5, for a weekly loss of 0.9 percent. The UK's blue-chip index rose nearly 1 percent earlier in the day before General Electric, a bellwether for the U.S. economy, announced its results.
"There is a reasonable chance the markets here and in the America will drift a little bit lower in the course of the next fortnight," said Tim Whitehead, head of portfolio services at Redmayne-Bentley.
"It's especially if you consider the FTSE 100 is back at the top of its trading range of between 5,500 and 6,000. We can see another 100, 200 points off the FTSE 100 over the next fortnight."
European shares also finished the day lower.
Banks were the standout losers on lingering concerns over the impact of the credit crisis. Barclays, Royal Bank of Scotland, HSBC, HBOS, Lloyds TSB and Alliance & Leicester dropped between 0.9 and 3 percent.
Index heavyweight Vodafone shed 4.3 percent after Morgan Stanley analysts said the stock did not appeal to them compared with KPN, TeliaSonera or France Telecom, after meeting EU officials on routing crisis. The broker remained "underweight" on Vodafone.
General Electric, the second-largest U.S. company by market capitalisation, reported an unexpected 6 percent drop in profit, as the slumping U.S. economy and credit crunch drove down profits at its financial, industrial and healthcare units. It also lowered its earnings forecast for the year.
U.S. consumer confidence also fell to its lowest in more than a quarter century in early April, diving deeper in recessionary territory on heightened worries over inflation and jobs, a survey showed.
Oil BP and Royal Dutch Shell fell 0.6 and 0.4 percent respectively, while miners were mixed, with Xstrata, Kazakhmys, BHP Billiton and Anglo American down. Vedanta Resources climbed 3.7 percent and Anotofagasta added 0.5 percent.
BITTER SWEET
Cadbury Schweppes fell 2.6 percent after traders expressed concern over its 2008 outlook, even though the confectionery group said its sweets business had a strong start to the year.
Friends Provident dropped 3.6 percent after sources close to the matter said U.S. buyout group J.C. Flowers was prepared to walk away from takoever target Flowers, frustrated at a lack of contact with the insurer's management.
BAE Systems was down 4.9 percent, extending the previous session's 0.8 percent decline. A London court said on Thursday a corruption investigation into arms deals with Saudia Arabia should not have been halted.
The energy sector, however, was in demand as more suitors were seen circling British Energy. A source close to the matter said France's EDF may join the 11 billion pound bid battle for the UK nuclear power firm, but will not overpay.
British Energy ended up 0.2 percent after rising as much as 2.5 percent and after gaining nearly 14 percent so far this month and more than 15 percent in March.
International Power rose 3 percent, while Scottish & Southern Energy added 2.2 percent.
Engineering project manager Amec advanced 2.9 percent after UBS upgraded the stock to "buy" from "neutral".
