FTSE down almost 50 points

The FTSE 100 Index was dragged lower by commodity stocks today as results from blue-chip miner Eurasian Natural Resources fuelled fears over the recovery.

The Kazakh miner was the London market's worst performer with a 4% fall after profits rose, but the group warned over lower metals prices later this year and higher costs.

In a sluggish summer session the wider Footsie lost 47.7 points to 5302.9 as Wall Street's Dow Jones Industrial Average steadied the ship after early losses.

Elsewhere in the sector BHP Billiton shares were 2% down after it launched a $40bn (€31.1bn) hostile takeover bid for the world's biggest fertiliser producer - Canadian firm PotashCorp - following the rejection of an earlier proposal deemed "wholly inadequate" by the target. BHP followed ENR down, losing 66p to 1850p.

A bounce back for the pound against the dollar to 1.56 also dented metal prices, while sterling topped 1.21 against the euro.

The pound was helped after minutes of the Bank of England's latest August meeting showed no members voting for further boosts to the money supply, with rate-setters discussing policy moves in either direction.

Meanwhile a host of blue-chip heavyweights turned ex-dividend, meaning investors are not entitled to the latest payout and dragging down prices.

The ex-dividend stocks included HSBC, off 14.9p to 652.8p, Standard Life down 5.2p to 208.4p and British American Tobacco 48p cheaper at 2232.5p. Property group Hammerson fell 5.7p to 363.7p and Financial Times publisher Pearson lost 15.5p to 976p.

The pressure on BP shares in recent days continued as fears over the cost of litigation relating to the Gulf of Mexico oil spill left shares 10.4p down at 397.6p.

Guinness drinks giant Diageo also slipped lower today after analysts at Collins Stewart said the firm was due for a tough 2011 because of its dependence on markets with high unemployment. Shares were off 12p to 1093p.

But retailer Marks & Spencer made progress after drawing in more positive broker comment, as Arden Partners upgraded the stock from 'reduce' to 'neutral'. Shares added 2.4p to 341.2p as Arden said it was impressed by recovery signs at the food business.

Elsewhere on the risers board, British Airways made more progress after workers at airports operator BAA cancelled a planned strike earlier this week, lifting shares 4.3p to 225.5p.

Transport group Stagecoach made healthy progress in the FTSE 250 Index after it reported a 7% rise in like-for-like revenues at its South West Trains rail division. With its North American coach arm also showing signs of recovery, shares lifted 2.6p to 169.9p.

Rival National Express added 2.3p to 224.7p.

The biggest Footsie risers were Inmarsat up 38.5p to 725p, Intertek ahead 71p to 1745p, Legal & General up 2.5p to 95.75p and Essar Energy up 9.7p to 408.6p.

The biggest Footsie fallers were ENR down 41.5p to 926.5p, BHP Billiton off 66p to 1850p, BP down 10.4p to 397.6p and Fresnillo, which fell 26p to 1025p.