The FTSE100 closed down 143.4 points lower at 5,562.9 with the FTSE250 down 295.2 points at 8,813.7 and the FTSE Smallcaps down 55.8 points at 3,338.2.

Volume was heavy with 3.62 billion shares trading hands in 440,972 deals, helped along by the 110 million BAA shares acquired by Citigroup this morning.


On Wall Street, the DJIA gained 113.5 points at 10,816.2, on what could be the fourth consecutive session of losses, while the Nasdaq Composite was down 41.78 points at 2,110.34.


US investors remained cautious over inflationary fears, although many will focus on tomorrow's US trade deficit data, where the gap is expected to have widened yet again.


Meanwhile, sliding oil prices failed to persuade investors to return to the markets, with crude trading below the key $70 per barrel mark on news that US agent provocateur Musab Al-Zarqawi has been killed. Meanwhile the ongoing negotiations over nuclear capabilities in Iran also squashed concerns.


Today’s look at individual Stocks:


Shares in Cairn Energy are down 117p at 1,925p, BP closed down 21p at 603p and Shell fell 65p to 1,745p. Other oil-related stocks also fell into the red, with Tullow Oil down 27.75p at 324.25p and Premier Oil sliding 41.5p at 891.5p.


Not a very good day for Tullow Oil, however The Footsieblog is still holding onto the stock for now.


Miners also dropped as copper prices fell back 3%, giving up most of yesterday's gains, gold lost $10 at $622.50 per ounce.


Miners and oil companies aside, financial stocks faired no better, reflecting exposure to the US and the slump in global equities.


Amvescap was down 21p at 466.5p, Old Mutual was down 8p at 153.5p and Schroders was down 44p at 965p.


BAA reversed earlier gains to trade down 7p at 928p after a consortium led by Goldman Sachs ended its pursuit of the airport operator. Sources close to the US investment bank told AFX News that this morning's purchase of more BAA shares by Spanish rival Grupo Ferrovial has thwarted Goldman's takeover plans. The Ferrovial-led consortium, which agreed a 950.25p a share takeover of BAA on Tuesday, now owns more than 25% of the group.