Miners dragged on the FTSE 100 opening this morning following BHP Billiton’s $40bn hostile takeover bid for Canadian group Potash Corp.
The blue chip index fell 0.72% to 5311.95 points, with basic materials leading the declines.
BHP, which had an initial offer rejected by the Canadian fertiliser firm yesterday, have now come back to the table with a hostile approach. Shares in the stock fell 0.81% on the bid news.
Eurasian Natural Resources was the largest loser, declining 2.89% - while Vedanta Resources also suffered, falling 2.16%
At the other end of the index, utilities and transportations stocks were making gains. Intertek Group was the biggest climber, with 2.39%, followed by Legal & General (1.93%), BA (0.77%) and GlaxoSmithKline (0.45%).
Transportation companies were up despite another budget holiday firm, Kiss Flights, announcing it has ceased trading.
European stocks also fell, the first time in five days. Stoxx Europe 600 dropped 0.4% to 257.52 on the bank of news that Vestas, the world's largest wind-turbine maker, had lowered its revenue forecast. The stock plunged 16%.
In the US, the Dow Jones closed up 1.01% (10,405.85) and the S&P 500 up 1.22% (1,092.54) with shares in the capital goods sector supporting the rises. Technology company Heli Electronics boasted a 44% increase in share price following positive second quarter financial results.
Asian stocks rose overnight with Australian retail group Westfield leading the way. A jump in US industrial production also gave the MSCI Asia Pacific index a boost. It gained 0.5% to 118.95, its fourth day of rises.
