FTSE 100 continues decline

The FTSE 100 has ended over 40 points down to close at 5,095.57, hovering just above the 5,000 mark.

The index has been heading down since a promising start on Monday, as a US plan to bail out the financial system seems to be encountering opposition from US lawmakers.

British Energy finished 5.66 per cent higher at 765p after a 774p bid from EDF, while London Stock Exchange's plan to improve its services sent shares in the group up by 7.1 per cent.

Mining and energy stocks led the blue-chip index into the red, with Vedanta down 6.75 per cent and Anglo American slipping 5.99 per cent.

Ryan Kneale, market analyst at City bookmaker BetsForTraders.com, said: "After a week of chaos, the markets finally look to have calmed down, but you can still sense the under current of fear.

"The fear is that we are only one or two straws away from breaking the proverbial camel's back at anytime, with no one wanting to be caught out again."