LONDON (Thomson Financial) - UK smaller companies closed slightly lower today, dragged down by weakness among blue chip stocks, with Hogg Robinson Group sliding on expectation of a lower full-year EBITA.

At the close, the FTSE Small Cap index was 1.9 points down on 3,017.2, while the FTSE 100 index dropped 60.2 points to 5,545.6.

Hogg Robinson tumbled more than 20 pct with a drop of 11-1/2 pence to 41-1/2 pence, as the business support services company said it expects its full-year EBITA to be lower than the prior year at around 10 pct below the market consensus of 45 mln stg. It plans to peg the dividend, nevertheless.

Specialist medicines manufacturer ReNeuron fell 2-3/4 to 11 after announcing filing of its ReN001 stem cell-based stroke therapy would be delayed by "several months" because of a request for additional information by the US Food and Drug Administration.

Kitco Precious Metals and Economic Review - Global Liquidity Concerns on Eve of Interest Rate Announcement; Gold Soared.

Last week was marked by heightened price volatility and, within an environment that is jittery from the resurfacing of global liquidity concerns, gold would post a bid price that would breach the $1000 per ounce mark. Given the trend that was started in the week prior, there were doubts that gold would perform as strong as it did, but enhanced volatility provided periods of buying opportunities and investors took advantage of these. Overall the trading environment was a buzz with actions taken by the Federal Reserve and several other central banks to enhance liquidity to funding markets. This week the market will be buzzing over the Federal Reserve's interest rate announcement to be made this March 18. Federal Funds Futures is giving a 100% probability to a 75 basis point cut in the rate. There is even a probability that we will observe a full 100 basis point cut.

(AFX UK Focus) 2008-03-06 15:24 GMT: London shares stay weak midafternoon; NY starts lower; fund managers fall back

LONDON (Thomson Financial) - UK blue chips stayed weak albeit off session lows midafternoon as Wall Street put in a nervous early showing ahead of tomorrow's February US jobs report, with fund managers big fallers in London.

At 2.49 pm, the FTSE 100 index was 49.0 points lower at 5,804.5, above the early afternoon low of 5,783.7 but well below the opening peak of 5,871.1.

All the broader FTSE indices were lower, with the FTSE 250 index off 90.0 points at 10,054.9.

Volume remained thin, with 1.389 bln shares changing hands in 429,938 deals.

In early deals on Wall Street, the DJIA was 55.70 points lower at 12,199.30, with the S&P 500 index off 7.75 points at 1,325.95, and the Nasdaq composite index down 1.86 points at 2,270.95.

US stocks reversed yesterday's rally as sales reports from a big batch of retailers painted a mostly bleak picture of the economy, and rising oil prices, the sinking dollar and credit concerns also weighed on investors.