A strong run for firms reporting results this week helped London's blue-chips gain ground today although downbeat economic news from the US took the gloss off the day.

A major UK engineering firm said today it had spurned a takeover approach worth £1 billion.

The London market continued to be dogged by uncertainty after a session of fluctuating fortunes today.

The London market closed in the red today dragged down by heavily-weighted oil stocks following a mixed session in the City.

Lloyds TSB shares rose 1% today as investors took a punt on renewed speculation about a bid for the UK’s fifth largest banking group.