In the UK the FTSE 100 closed the day on positive territory moving up 9.8 points to 5,275.0 after starting the day in the red.
Hilton Group helped the index get off to a strong start on confirmation it is in talks over a sale of its hotels division to Hilton Hotels of the US.
Shares in Hilton Group raced 13.4% higher to close at 345.50p, spurred by news it was in talks to sell its hotels to US-based Hilton Hotels for an expected £3.6bn, more than anticipated.
The prospective disposal also lifted shares in rival Intercontinental Hotels 4.9% to 723p as investors scrambled to re-rate leisure firms in the wake of the news. Leisure firm Whitbread also gained 1.4% to 970p.
The oil sector was the weakest, with BG Group leading the way with a loss of 2.5% to 484p, while BP ended down 1.4% to 613.50p.
In the US, stocks edged slightly higher as the Dow Jones Industrial Average was up 22.81 points, or 0.22%, at 10,239.40, as a 15% rise in third-quarter profit from General Electric offset worries about the toll higher energy prices are taking on household budgets.
Consumer confidence unexpectedly fell to its lowest since October 1992 after the University of Michigan's preliminary index of consumer sentiment decreased to 75.4 from 76.9 in September.
Prices were also hindered by a government report which showed industrial production fell 1.3% in September, the biggest slide in 23 years, as hurricanes Katrina and Rita knocked out oil rigs and refineries.
Among the few rising stocks, GE shares improved by almost 1% percent to $34.28 in morning trading, while Motorola, the No.2 maker of mobile phones, rose $0.91 to $20.82, after South Korea's Samsung Electronics boosted its estimate for mobile-phone sales.
The effect of the two reports outweighed a drop in oil prices, as Exxon Mobil declined nearly 1% to $57.70 after crude oil lost 2% to $61.85 a barrel following yesterday's 1.6% slide. But even after a two-day retreat, oil prices are up 43% this year.
Other losing stocks include Ford Motor which has fallen 3.5% to $8.67 after Citigroup cut its rating on the carmaker and cut its price target. Chipmakers also dropped 0.7% as a group, with Texas Instruments, the world's third-biggest semiconductor maker, losing $0.82 to 2.7%. Xilinx, the No. 1 maker of programmable semiconductors, lost $0.46 to $22.01, while Intel, the world's biggest chipmaker, slid $0.16 to $23.04.IFAonline
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Fine reduced to £60,000
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