FTSE closes at 6267.2

The FTSE 100 has closed 25.4 points down at 6267.2 amid concerns about the US economy and the heightening tension over Iran.

Across the pond, Federal Reserve Chairman Ben Bernanke said uncertainty over the outlook for the US economy had increased, adding to investors' woes.

UK gross domestic product data provided little support for London shares as the figures for the final quarter of 2006 came in broadly in line with expectations.

Takeover speculation provided some impetus for the market with Next shares closing up more than 2 per cent, or 51p at 2353p, as rumours regarding a possible bid for the stock continued to circulate.

However, investors were unimpressed with the latest round of corporate results and trading updates from other potential takeover targets as Alliance Boots slipped 8p to 1013p even as it advised that it was set to meet annual profits forecasts.

Supermarket Sainsbury's - also eyed by private equity bidders - lifted 1p to 552p after its fourth quarter results topped hopes with a 5.9 per cent rise in like-for-like sales for the last quarter of its trading year.

The biggest FTSE risers were Next up 51p at 2353p, Drax Group ahead 13.5p at 779p, BP up 8.5p at 552p and National Grid ahead 8.5p at 788.5p.

The biggest fallers were Amvescap off 30p at 565p, Legal & General down 5.1p at 155p, Old Mutual off 5.3p at 161.6p and Scottish & Newcastle down 15.5p at 271p.

Amvescap's 5 per cent slump followed a US report which said Deutsche Bank had lured away 16 money managers from the UK-listed investment manager.

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