The FTSE 100 Index clawed back hefty losses of more than 100 points at one stage to stand close to its opening mark, down 18.56 points at 4152.69.

The Footsie was offered some support by gains on the Dow Jones Industrial Average in America, which rose nearly one per cent in spite of a shaky start to trading.

Falling commodity stocks held the Footsie back though, with oil easing back towards the 50 US dollars a barrel mark – reaching a low of 50.15 dollars, although it later pulled back a little.

A subdued end to US trading on Tuesday night after worse than expected GDP figures had also dampened the mood.

A raft of economic data came out across the Atlantic yesterday, with jobless claims down but not by as much as analysts expected.

UK figures showing an unchanged 0.5 per cent fall in third-quarter output held no nasty surprises for investors, although consumer spending fell for the second quarter in a row for the first time since 1992.

BP and its Anglo-Dutch rival Royal Dutch Shell were among the heavyweight casualties of the session. BP was 73/4p lower at 5123/4p, while Shell lost 29p to 1620p. Oil and gas services firm Petrofac fell 63/4p to 3361/2p.

Rio Tinto recovered some lost ground after the collapse of its planned takeover by BHP Billiton on Tuesday. Shares in Rio added 17p to 1567p.

One of the leading Footsie fallers however was Halifax Bank of Scotland, down by seven per cent or 61/2p to 901/2p as market attention turned to the extent of its exposure to the faltering housebuilding sector.

Utilities had a tricky session after United Utilities failed to impress with interim results.

Analysts at Collins Stewart worried about increasing cost pressure on the business as shares fell 26p to 618p.

Elsewhere, National Grid lost 29p to 645p and International Power fell 51/4p to 2381/4p

The leading riser was platinum specialist Johnson Matthey, up 15 per cent or 1091/2p to 832p, after it said an expected fall in second half profits should be in line with market expectations.

It was closely followed by caterer Compass, which rose 24p to 2811/2p – a gain of nine per cent – after the company posted a sharp rise in profits and said it was well placed for further growth in 2009.

Mining firm Antofagasta was another gainer, adding 28p to 4291/4p, despite predictions of a 16 per cent fall in its underlying earnings during the third quarter from Credit Suisse due to lower metal prices and higher costs.

Sector peer BHP Billiton advanced 104p to 1155p as investors gave the thumbs-up to its decision to abandon the Rio Tinto takeover deal.

The biggest Footsie risers were Johnson Matthey ahead by 1091/2p at 832p, BHP Billiton up by 104p to 1155p, Compass ahead 24p to 2811/2p and Vedanta Resources, which ended the day 44p ahead to 553p.

The biggest Footsie fallers were Wolseley which was down by 191/2p at 2691/4p, HBoS was off 61/2p to 901/2p, Standard Chartered slipped 551/2p to 7841/2p while Tullow Oil finished the session 29p lower at 4701/2p.