Energy slump drains FTSE

The FTSE closed at its lowest level in more than a week Wednesday following falls in energy firms and food retailers.

After dropping as low as 5,190 this morning, the FTSE staged a mini-recovery to close less than 20 points (0.37%) down at 5,203.89.

The FTSE 250 was also down, closing more than 112 points (1.24%) lower at 8,919.49

Oil and gas firms were weak as crude prices hovered around $73 a barrel, well below October's $80 highs.

Insurer Old Mutual was the biggest loser, dropping 5.63% to 104p, while Man Group, Fresnillo, Barclays and Resolution all fell more than 3%.

Property firm Sergo was among those stemming the losses after J.P. Morgan lifted its rating on the stock to 'neutral' from 'underweight' as part of a review of the European real estate sector. Sergo advanced 3.92% to 334.1p.

Standard Chartered gained more than 2% to £14.67 after announcing it was unlikely to face any material impairments due to the problems in Dubai.

Meanwhile, miners Xstrata and Rio Tinto added 2.22% to £10.57 and 1.8% to £31.42 respectively.

The Dow Jones made moderate gains in early New York trade, gaining 12.24 points (0.12%) to 10,298.21.