A MUCH higher than expected US non farm payroll report for December demolished any lingering chances of British stocks ending a turbulent week on a firm note. News that 262,000 new jobs had been created last month in the US, against expectations of about 175,000 to 200,000, saw US Treasury bonds sliding.

British gilts, which earlier had posted gains ranging up to a half point, quickly fell away to close level to six ticks weaker across the 10 year to 20 year range.

The US jobs report sent the opposite signals to global markets that Thursday's producer price details had conveyed. The figures prompted the Dow to fall more than 60 points soon after opening, putting the seal on a thoroughly bad day for British stocks.

At its worst, just after Wall Street opened, Footsie fell over 50 points before stabilising and clawing back almost half its losses. The index settled 30.4 off at 4,056.6. The Dow gathered itself and rallied strongly to show a minor gain after London closed.

The FTSE Mid 250 index, which has outperformed the 100 index for much of the week, managed to resist the sell off in the leaders, but gave way in the early afternoon as the payroll report was announced, eventually closing, 9.9 off at 4,507.8.

Not so the FTSE SmallCap, which settled 2.5 higher at 2,231.6, leaving that index up 42.6, or 1.9 per cent, firmer over the week. During that period the FTSE 100 has fallen 32.9, or 0.8 per cent, while the FTSE Mid 250 has moved up 14.2 points.