By Barbara Kollmeyer, MarketWatch MADRID (MarketWatch) -- London stocks could not overcome global economic worries on Friday, though deal news in the oil sector lifted Dana Petroleum by more than 5%, while BHP Billiton was also higher on continued talk about its quest for Potash Corp. of Saskatchewan. Earlier gains for the FTSE 100 (UK:UKX 5,188, -23.60, -0.45%) gave way to weakness by mid-morning, with the index down 0.3% to 5,198.16 as Continental markets all turned red. Global economic worries stemming from a jump in weekly jobless claims and weak manufacturing data on Thursday in the U.S. drove Europe and Asia stocks south on Friday. Ben Potter, strategist at IG Markets, said the FTSE is likely to see more selling before bargain hunters "wade in." As for Friday, he said there are little data on the fundamental or corporate side to move investors, though miners will continue to watch for the results of the tightly contested Australian elections, with regards to the controversial mining-tax plan. "Otherwise it's all going to be about sentiment -- obviously some fair chunks of cash have come off the table in the last 24 hours but with the prospect of thin volumes leading to even more volatility, the temptation could well be to maintain the defensive stance," he said in a note to investors. Deal news on Friday at least gave investors something to distract from economic worries. Shares of Dana Petroleum rose 5.6% to 1,789 pence after Korea National Oil Corp. on Friday launched a 1.87 billion pound ($2.92 billion) hostile bid for Dana Petroleum after the U.K. firm's board of directors rejected an earlier approach. See full story on KNOC bid for Dana. Another big gainer in the oil sector was BG Group (UK:BG. 1,097, +66.50, +6.46%) , with those shares up nearly 5% on continuing deal speculation. On Thursday, shares rose on speculation two possible bidders were eyeing the group and willing to pay at least £16 a share. A handful of miners were also eking out gains, including BHP Billiton (BHP 67.35, -0.83, -1.22%) (UK:BLT 1,822, +11.50, +0.64%) and African Barrick Gold. BHP is currently battling for Canada's Potash Corp. of Saskatchewan. The Wall Street Journal reported on Friday that the fertilizer giant is seeking a white knight to counter BHP's hostile $38.6 billion buyout bid, citing people familiar with the matter. See full story on BHP Billiton's bid for Potash . But decliners outweighed the gainers on Friday, with several miners in negative territory as markets were nervous ahead of the Australian elections this weekend, which may decide whether a controversial mining tax stays or is killed. More on Australia elections Eurasian National Resources fell 3.6% after Citi analysts cut the group to hold from buy, saying shares are fairly valued with risks owing to assets it has acquired and is looking to acquire. Kazakhmys fell 3.1% and Xstrata lost 2.2%. Shares of U.K. pub operator Mitchells & Butlers (UK:MAB 291.80, -4.00, -1.35%) fell 1.2%. The group said Friday that it has agreed to sell 333 non-core pubs to a subsidiary of private equity firm TDR Capital for £373 million pounds. The company said the disposals are in line with its strategy to withdraw from the lower-price, drinks-led market and late-night High Street bars.

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