London shares were on the slide on Friday amid a lack of corporate news, but Imperal Tobacco was higher on takeover talk.
The FTSE 100 Index fell four points to 6325 while the CAC-40 in Paris dropped 23 points and Germany's DAX dipped 16.75 points.
Markets were treading water following slight falls in the main US indices on Thursday. Japan's Nikkei rose 20 points and the Shanghai Composite closed 13 points up.
Traders failed to react significantly to comments by European Central Bank President Mario Draghi that the ECB would "do what it must" to raise eurozone inflation.
In the UK, October’s UK public finance figures showed borrowing had not fallen as quickly as expected, leaving Chancellor George Osborne with less room for manoeuvre in his Autumn Statement next Wednesday.
Public sector net borrowing excluding banks in October was £8.2bn, higher than market forecasts of £6bn and last October’s total of £7.1bn - the largest October deficit since 2009.
On the markets, Imperial Tobacco (LON:IMT) wafted 76p higher to 3568p on renewed speculation that rival British American Tobacco (LON:BATS) has been courting bankers about financing for a full takeover of the Lambert & Butler and JPS maker.
The biggest faller overall was beleaguered South African platinum miner Lonmin (LON:LMI) after Lonmin’s shares tumbled after shareholders approved a deeply discounted rights issue to keep the company afloat. The stock reversed 8.32p, or 84.5%, to 1.53p.
Russ Mould at AJ Bell said: "Lonmin has been hit by plunging platinum prices, but there are fears a further cash injection will be needed unless prices improve.”
Halosource (LON:HAL) backtracked 5.5p to 19.5p as the the global clean water technology group said order delays and operational problems in China would hit second half drinking water revenue.
Oil and gas investor Parkmead (LON:PMG) leaked 1.25p to 70p despite telling investors that the Diever West gas field in the Netherlands has achieved first gas.
MARKET PREVIEW
London's premier share index is tipped to open flat after yesterday's gains as central banks and their plans remain the focus.
The FTSE 100 Index closed 52 points higher at 6,330 but today is called to start just 0.5 higher.
On Thursday, the European Central Bank’s Peter Praet hinted that another quantitative easing injection could be on its way, suggesting further loosening of policy, while in the US the prospect of a December rise initially was pushed aside but then appeared to prompt trader jitters.
The benchmark Dow, S&P500 and Nasdaq all closed a shade down.
Angus Nicholson, an analyst at spread-better IG, noted: "The pullback seen in the US dollar in the wake of the Fed minutes does seem to reflect a lot of uncertainty around the pace of rate hikes by the Fed.
“It is this US-dollar weakness and ongoing swoon in commodity prices that provides a jarring counterpoint to the gains seen in Asian equities of late."
Speaking of Asia, gains appeared to be consolidated. The Nikkei 225 in Japan added 20 overnight and China's Shanghai Composite index was up 13.
Meanwhile, commodity prices are under pressure, with copper reaching new six-year lows heightening worries over global demand. Oil is at around the US$40 a barrel mark.