LONDON MARKETS: U.S. Growth Data Erases FTSE 100 Gains

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- U.K. stocks on Wednesday erased gains and slipped from a 41/2 year high, after disappointing U.S. growth data weighed on investors' minds, while Imperial Tobacco Group PLC slumped after a profit warning.

The FTSE 100 index fell 0.2% to 6,329.88, pausing after a five-day rally.

Shares of Imperial Tobacco Group (ITYBY) slumped 4.9%. The tobacco firm issued a profit warning for the first half, citing weakness in the European market, which is one of the company's key markets.

Petrofac Ltd. dropped 5.9%, as peer firm Saipem SpA slumped 34%, after forecasting a significant decline in earnings for 2013.

Pointing in the other direction, shares of BP PLC (BP) gained 0.7% after the oil major said a federal court approved a settlement to resolve all criminal claims related to the Deepwater Horizon spill accident. and

The broader U.K. stock market had started Wednesday on a strong footing, but was sent lower in afternoon action on the back of weaker-than-expected growth numbers from the U.S. Gross domestic product for the fourth quarter shrank 0.1%, down from 3.1% in the third quarter, and below estimates of a 1% rise.

Most mining firms were on the decline, with shares of Kazakhmys PLC off 4% and Anglo American PLC 2% lower.

Shares of Antofagasta PLC sank 7.1%. The miner said it expects 2013 copper production in line with 2012, while warning that the cost of copper production is set to rise at a faster pace.

Shares of chemicals firm Johnson Matthey PLC lost 4.3%, after reporting a 19% drop in adjusted pretax profit for the third quarter.

Among other notable movers, United Utilities Group PLC advanced 0.2%, as the firm said current trading is in line with the group's expectations.

Some banks were also on the rise. Shares of Royal Bank of Scotland Group PLC (RBS), rose 0.6% after suffering a 6% loss on Tuesday on news U.S. authorities are pushing the bank to plead guilty to criminal charges to settle allegations of rate rigging.

Shares of HBSC Holdings PLC (HBC) gained 0.5%.

Outside the main U.K. index, shares of Imagination Technologies Group PLC surged 11%, after Morgan Stanley lifted the stock to overweight from equal weight.

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