The FTSE 100 has closed 16.3 points, or 0.30%, lower to 5,423.5, as falls by BP, Vodafone and BT took away the gains made by Cairn Energy.
Rexam, the world's biggest drinks-can maker, jumped 15.5p, or 3.12%, to 512p, after rumours of a takeover bid, while Cairn Energy also helped to relieve the losses with a rise of 90p, or 5.11%, to 1,850p, as the oil explorer gave a more optimistic appraisal of the size of its Indian oil fields.
Energy stocks BP and Royal Dutch Shell were some of the biggest losers, as BP dropped 13p, or 2.07%, to 614p, while Shell slipped 33p, or 1.79%, to 1,810p as the sector tracked a drop in crude prices to a four-month.
Vodafone, the world's biggest telecoms operator, also slipped 2.5p to 148p, ahead of its interim results, while BT ended with the biggest loss of 6.5p, or 3.03%, to 208p, after its second-quarter core earnings drifted towards the lower end of forecasts.
In the US the Dow Jones Industrial Average has fallen 17.28 points, or 0.2%, to 10,528.93, thanks to a disappointing forecast from Cisco Systems and a restatement from General Motors reignited concern about profit growth.
Juniper Networks, Cisco's smaller rival, has dropped $0.74 to $23.86, while Nortel Networks, the No. 1 telephone- equipment maker in North America, slid $0.12 to $3.09.
Meanwhile, GM, the world's largest carmaker, has fallen $1.66, or 6.7%, to $22.97 for the worst performance in the Dow average so far. The company quadrupled its second-quarter loss to $1.07bn because it overestimated the value of a unit, and said it will restate 2001 profit due to accounting errors.
Elsewhere, Intel, the world's biggest computer-chip maker has gained $0.29 to $25.09, as the company announced a buyback plan that amounts to the second-largest repurchase in the US.
Exxon Mobil, the world's biggest publicly traded oil company, has lost $1.42 to $56.08, as crude oil for December delivery slipped 1.8% to $57.90 a barrel.IFAonline
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