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Britain's top shares fell on Friday as worries about a slowdown in China's economic growth added to the hindrance of record oil prices and rising interest rates to seal a grim week for equities.
British Airways again felt the pinch from rising fuel costs, while mining stocks were hit as jitters returned that China's rampant industrial demand, which has helped drive metals markets, will slow. Rio Tinto, Antofagasta and Anglo American each fell about three percent and Vedanta Resources lost 5.3 percent.
Chinese state banks and other lenders were told by a regulator on Friday to step up risk controls in a bid to help cool the economy.
The FTSE-100 closed down 12 points, or 0.3 percent, at 4,441.8 - up from a morning low of 4,412 but still down 1.3 percent over the week.
Wall Street opened mixed after data showing a rise in consumer prices reinforced the prospect of a rise in American interest rates next month.
"The prospect of a pick-up in inflation is what's spooking the market," said David Harbage, fund manager at Barclays Private Clients. "We've gone from talking about a jobless recovery to discussing the extent and magnitude of rises in interest rates required to counter the strength of the growth."
Also undermining sentiment is the threat that record oil prices will choke growth.
British Airways led fallers with a 3.6 percent drop and has fallen 13 percent this month, as it is seen as one of the most exposed airlines to rising fuel costs. BA is expected to comment on the impact at results on Monday.
In contrast, mobile phone operator mmO2 rose 2.4 percent on the expectation it will show further operational improvement in results due on Tuesday.
Private equity firm 3i added 1.6 percent after news Philip Yea will become chief executive was well received, while retailer Marks & Spencer topped the FTSE leader-board with a 2.5 percent rise as analysts reacted positively to its new head of women-wear.
Financial stocks were generally weaker, while pubs group Enterprise Inns fell 1.7 percent after analysts at Smith Barney cut their rating on the stock to "hold" on concerns about the impact of a parliamentary probe of the relationship between the group and its pub tenants.
Dealers downplayed the impact of domestic political issues on shares. Prime Minister Tony Blair dismissed talk he would resign as "froth", but some in his party say revelations of abuse of prisoners in Iraq could see him quit.
"It's not something the market seems to be giving a great deal of attention to at the moment, although obviously the Iraq situation is having an effect," one dealer said.

Copyright Reuters, 2004

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