A better-than-expected start to the US bank reporting season failed to lift investor spirits today as fears over the global economy weighed on sentiment.
The FTSE 100 Index closed 13.3 points lower at 6,104 after the World Bank slashed growth forecasts.
UK blue chip banks were lower despite impressive figures from Wall Street giants JP Morgan Chase and Goldman Sachs.
On the FTSE 100, Lloyds Banking Group was off 1.4p to 53p and Royal Bank of Scotland was down 4p at 350.1p, while Barclays shed 2p to 293.4p.
Supermarket Tesco, which has said it is working with authorities to discover how traces of horse meat came to be discovered in frozen beefburgers sold by the chain, fell 2.5p to 347.1p.
Thomson parent TUI Travel was the biggest riser in the top flight, up 11.1p to 292.5p after it confirmed reverse takeover talks with its German majority owner.
In retail trading updates, French Connection slumped 15% at one stage after it warned it expected full-year losses of up to £8million. Shares closed 2.25p lower at 27.25p.
Meanwhile, a bigger-than-expected 8% surge in festive sales failed to benefit shares in pub chain JD Wetherspoon. Shares fell 13.5p to 518.5p.
The biggest FTSE 100 risers included Tate & Lyle ahead 19.5p to 788.5p, Carnival 60p higher at £25.20 and Shire up 49p at £20.82.
The biggest FTSE 100 fallers were Imperial Tobacco down 116p to £23.68, Xstrata off 40.5p to 1,142.5p, Glencore International 12.5p lower at 380.25p and Anglo American down 60p to £19.01.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Wood Group up 1.9% to 803p while AMEC finished 1% ahead at £10.89 and Premier Oil edged up 0.8% to 371.4p.
Among the day’s fallers, EnQuest closed off 3.6% at 119.05p, Aberdeen Asset Management gave up 1.3% to 391.7p and Standard Life fell 1.1% to 345.8p.