Britain's FTSE 100 index closed easier on Friday, fading after a firmer start, with fund manager Schroders the biggest faller after disappointing results. Schroders dropped 9.5 percent as traders said its interim numbers were slightly lighter than some investors had hoped for.
"Their inflows were poor and apparently they're saying this year is a year of consolidation but that was meant to be last year and this is meant to be the year of momentum," said a trader.
"The figures weren't great but there have been loads of redemptions and outflows of money. It's stock specific because the others in the sector have been solid as a rock," said another.
Prices had rebounded at the outset on relief that a plot to bomb aircraft flying between Britain and the United States had been thwarted although a weak start on Wall Street and continuing concerns that interest rates may have to go higher yet to damp down inflation brought the UK benchmark index back.
The FTSE 100 closed 3.3 points down at 5,820.1 making a 70-point loss on the week but still above the week's low of 5,752.6 points, hit on Thursday when news of the airline bomb plot sent the market lurching lower.
"We're breathing a sigh of relief that the week's over without any more horrendous news. The market has shrugged off the bad news remarkably well. We're down a bit on the week but when you see the things it's had thrown at it it's not been a bad performance," said a trader.
Tom Hougaard, Chief Market Strategist at financial bookmakers City Index said the market had recovered its poise after Thursday's volatility although interest rate worries would continue to dog shares.
"This market is either range bound or just going to push its way a bit higher. It seems as if people want to hold it right here," said Hougaard.
"It might be a good idea to consider maybe taking some profits. The economic outlook doesn't look too good because everyone is talking about more interest rate hikes," he added.
Heavily weighted mobile phone giant Vodafone weighed on the market, continuing to slip after a profit warning from Deutsche Telekom on Thursday. Shares in the mobile phone giant fell 1.8 percent.
"I would say the medium-term trend for telecoms has been negative and I would still say it will continue to be negative," said Edward Menashy, Economist and Strategist at Charles Stanley.
Miners were steady after the Wall Street Journal said Brazil's CVRD would make an all-cash bid for Canada's Inco, sparking talk of sector consolidation.
Xstrata gained 0.5 percent, while Anglo American gained 0.4 percent.
Retailers were firm with supermarkets group Tesco rising 2.3 percent after a report it was to compete head on with retailer GUS and launch a homeware catalogue. GUS fell 1.6 percent.
Morgan Stanley analysts said the Daily Mail's suggestions of a 20 million print run represented a much larger roll-out than previously anticipated. It would also provide an additional spur to Tesco's UK sales momentum, leading to potential sales approaching 1 billion pounds.
"We previously estimated that a catalogue launch could add 1-2 percent of sales per annum in the medium term, this could be revised up to 2-3 percent," said Morgan Stanley's Nick Coulter and Fabienne Caron in a research note.
News that the United States and Lebanon said a deal on a UN resolution to end Israel's war with Hizbollah guerrillas was in sight could be a positive factor for shares on Monday, traders said.
"There's talk again that some sort of deal for peace in the Middle East might be close, so if something there happens over the weekend we might go better next week," a dealer said.