Market report: Tuesday close

DOLLAR earners were under pressure again as the greenback renewed its slide to a three-year-low against the yen.

Fund manager Amvescap toppled another 14 1/2p to 505 1/2p, while miners Anglo American dropped 25p to 1152p and Xstrata 18p to 489 1/2p. Chemicals and paints group ICI slid 7p to 172 3/4p and engineer GKN fell 6 1/4p to 249 1/2p.

The FTSE 100 narrowed early losses but a rally ran out of steam as Wall Street drifted back. The benchmark index fell 6.5 points to 4221.7.

The benchmark index drew early support from drug heavyweights GlaxoSmithKline and AstraZeneca, which climbed on favourable broker reports.

At GSK, a US appeals court has overturned a decision on a competitor's copycat drug in its favour. CSFB and Goldman Sachs turned positive, the Swiss broker raising its target price to 1500p. The Americans said GSK will outperform and it improved 22p to 1284p. CSFB raised its target price for AstraZeneca to 2900p but the Anglo-Swedish group surrendered its gains to end down 15p at 2596p.

Bid candidate Canary Wharf fell 3 1/4p to 279p. Dealers remain convinced that later this week its independent non-executive directors will recommend a 300p-a-share offer from investment banks Morgan Stanley and Goldman Sachs.

When markets are looking slack, bid talk tends to emerge, or, in the case of hotels specialist De Vere, re-emerge. It fell 8 3/4p to 389p after Whitbread denied talk that it wanted to add De Vere to its Marriott Hotels and David Lloyd leisure interests.

Speculation was also mounting that property veteran Jack Petchey would check in at Jarvis Hotels, where he hold 29% via his Isle of Man investment vehicle Trefick. But he may be pipped by Dawnay Day Properties, which owns 4%. Jarvis fell 1/2p to 144 1/2p.

Manchester United hit a 12-month high of 188p, up 4 1/4p, on continued bid speculation.

Ahead of a trading update on Wednesday, Securicor enjoyed a buy recommendation from Deutsche Bank. It says the stock is 'too cheap to ignore'. Securicor rose 1p to 85p, closer to Deutsche's target of 100p.

Mining group Lonmin issued a $200m (£121m) convertible bond, leaving it 20p weaker at 946 1/2p. A strike at its plant in Hertfordshire sent Johnson Matthey down 11p to 948p.