Oil majors BP and Royal Dutch Shell dragged the FTSE-100 lower as further falls in crude oil prices overnight depressed the energy companies. BP gave up 8.75p to 496p while Royal Dutch Shell ‘B’, the version owned by most UK investors, fell 43p to 1653p.

Drugs major AstraZeneca was also among leading fallers, surrendering 84p to 2627, after the US Food and Drug Administration demanded more information on its application to sell a new version of its schizophrenia treatment Seroquel XR.

BT led blue-chip fallers, dropping 8.3p to 131.5p as its shares went ‘ex-dividend’, while retailing and consumer-facing stocks continued to be depressed by the bleak outlook for the retail sector. Thomas Cook fell 3.3p to 173p, Carnival fell 25p to 1452p and InterContinental Hotels and Home Retail Group gave up 4.25p to 205p.

Overall, the FTSE-100 finished down 31.4 points at 4224.04, with sentiment also depressed by the triple-digit fall overnight on Wall Street and fresh falls in Tokyo and Hong Kong.

Ian Murrell, head of equity sales at stockbroker Wills & Co, said: “Any Santa Claus rally has well and truly been stolen.”

Among mid-caps, consumer loans group Cattles rebounded 1.5p to 12p after Tuesday’s sell-off, while events firm ITE Group firmed 2.5p to 60.25p as an acquisition gave it control of Turkey’s leading travel and tourism exhibitions organiser.

But Forth Ports gave up 9.5p to 940p, as broker UBS cut its share price target for the stock from 1240p to 1000p, while brewing and pubs group Greene King lost 11.5p to 414.75p as it went ‘ex-dividend’.

Lower down, gold and coal mines investor Cambrian Mining hardened 3.5p to 22p after agreeing an all-share offer worth £28.8million from Western Canadian Coal Corp, while miner Triple Plate Junction rose 0.75p to 1.375p on news Canada’s Newmont Mining may buy a 10 per cent stake.

Innovation Group rallied 0.05p to 5.73p after Altium Securities analyst Jonathan Imlah urged clients to buy. Mr Imlah said the insurance software and outsourcing firm, a former member of the FTSE-Mid 250, was worth a fresh look following a contract win.

He told clients: “It is significant in that it shows that the business continues to win new deals and new clients in spite of the ongoing volatility of the share price. The more such deals the group announces, the more attractive it will be to potential suitors and the more likely some conclusion will be reached with the private equity approaches that emerged last week.”

Blue Oar Securities dived 4p to 9p after bidding consortium Evolve’s after-hours announcement on Tuesday that it has won a majority of acceptances for its £15.4million offer for the broker. Evolve’s shares were unchanged at 9p — valuing Blue Oar shares at 9.225p each under the takeover.

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