Britain's top shares fell on Friday, trimming the week's strong gains as oil titan Shell came under pressure and sluggish growth in US employment rattled confidence in a revival in the world's biggest economy.
Shell ended a volatile week on the defensive after its new chief said the company would listen to reforms that investors insist it needs, but indicated there would be no quick fixes. Investors have been concerned about its growth prospects and corporate structure. The shares lost 1.7 percent.
The FTSE-100 share index closed down 12 points, or 0.3 percent, at 4,547.1, trimming its rise for this week to 1.2 percent.
The index failed to sustain an early rise to 4,566.2, its highest intraday level since July 2002, and the reversal accelerated after data showed US employers added 21,000 workers to their payrolls last month, less than the 125,000 expected.
"It confirms the picture we've seen of very anaemic recovery in employment, which has to put a reasonably sized question mark over the sustainability of the recovery," said Alex Scott, analyst at Seven Investment Management.
But equities on both sides of the Atlantic recovered from a sharp initial reaction to the data as dealers said the figures reduced the threat of a rise in US interest rates.
British American Tobacco was also knocked by negative US news, after R.J. Reynolds Tobacco increased its 2002 product liability defence costs.
BAT is due to merge its US arm with R.J. Reynolds later this year. It was the biggest FTSE-100 failure, down 1.9 percent.
Rival Gallaher dipped 1.7 percent after analysts at UBS downgraded their rating on the stock to "reduce".
But British Airways topped the FTSE leader-board with a four percent rally, after bullish analyst comments from Smith Barney on Thursday backed up optimism that the airline's recovery is on track after three tough years. BA will hold an investor day next Thursday.
Asset managers also found favour, with Man Group adding 1.4 percent after CSFB raised its earnings forecasts on the firm and said Man remained its preferred UK asset manager. Amvescap gained 2.8 percent.
Britain's biggest high street baker, Greggs, was one of the top mid-caps with a 3.7 percent rise after unveiling a better-than-expected 10 percent rise in annual profit.
But food retailers J. Sainsbury and William Morrison both lost more than one percent on fears that rival Asda had intensified a price war with more price cuts.