By Jon Hopkins
LONDON (Reuters) - Britain's leading share index ended lower on Friday, led by falls in commodity stocks after weak U.S. growth data raised fresh concerns about the global economic recovery.
The FTSE 100 closed down 55.93 points, or 1.1 percent, at 5,258.02, extending its losing streak to a third session. The blue-chip index was down 1.0 percent for the week having hit a 10-week closing high on Tuesday.
But over July as a whole, the FTSE 100 index rose 6.9 percent, its best monthly increase for exactly a year.
"Just as traders looked ready to peer over the parapet, they have been shot down by the U.S. data which brought back yet another wave of risk aversion," said Anthony Grech, head of research at IG Index.
The first estimate of U.S. economic growth for the April-June period was for an annual rate of 2.4 percent versus analysts' forecast of 2.5 percent.
Meanwhile, U.S. consumer sentiment plunged in July to its lowest level since November 2009, but the ISM-Chicago business barometer showed business activity in the Midwest grew more than expected in the same month.
By London's close, U.S. blue chips were down 0.2 percent as investors chewed over the mixed aspects of the data.
The energy sector was the biggest drag on blue chips in London as crude prices fell back. BP was down 1.8 percent while Royal Dutch Shell (Royal Dutch Shell PLC 'A' Ord) shed 1.6 percent.
But BG Group gained 0.8 percent, bouncing back after falls following disappointing results earlier in the week.
Miners were also lower as investors' risk appetite waned, with Xstrata (Xstrata PLC) among the worst off, down 1.6 percent.
India-focussed miner Vedanta Resources (Vedanta Resources PLC Ord USD0) shed 1.5 percent as it reported that first-quarter output fell from a record 7.8 million tonnes in the fourth quarter.
Anglo American (Anglo American PLC Ord USD0.54) fell 0.7 percent as it reinstated dividends with first-half results but warned about delays and high costs at a key iron ore project in Brazil.
Banks were weaker as a sector, mainly due to a 1.6 percent fall by heavyweight HSBC (Hsbc Holdings PLC) which posts first-half results on Monday, while Standard Chartered (Standard Chartered PLC) lost 1.0 percent.
Also among financials, South African investment bank and asset manager Investec (Investec ORD GBP0.0002) dropped 2.4 percent after reporting first-quarter results.
Drugmakers came under pressure, led by Shire (Shire ORD 5P), down 2.4 percent ahead of second-quarter results next Thursday.
UTILITIES BOOSTED
Utilities were the biggest risers in London, wanted for their defensive attractions and with valuations boosted by an infrastructure takeover bid.
Hong Kong-based billionaire Li Ka-shing has offered to buy French firm EDF's UK power grids business for 5.8 billion pounds.
United Utilities was the top blue-chip riser, up 4.4 percent, helped by the 119 million pound sale of its non-regulated gas and electricity metre business..
Blue-chip peer Severn Trent (Severn Trent ORD 97 17/19P) added 2.3 percent, while mid-caps Pennon Group (Pennon Group ORD 40.7P) and Northumbrian Water took on 2.2 and 0.7 percent respectively.
"You could almost be talking a paradigm shift in terms of read-across to the waters," said Evolution analyst Lakis Athanasiou.
"I think all of them are in play, not necessarily as a bid, but just as showing the appetite for this kind of assets."
Also on the upside with blue chips, British Airways (British Airways PLC) rose 1.7 percent after the airline's quarterly pretax loss proved less than expected, although it widened by 10.8 percent to 164 million pounds ($256.4 million) as trade was hit by a volcanic ash cloud and strike-related issues.
"Investors will look to next week with some trepidation as no clean break above 5,300 has yet been made. This is the level at which the last few rallies have stumbled and it would be unsurprising to see the FTSE flirt with this mark early next week," said IG Index's Grech.
(Editing by Michael Shields)