FTSE 100 falls for fourth day

The FTSE 100 fell for a fourth day to close 0.5 per cent lower at 4,426.19 as mining stocks retreated on the index.

Eurasian Natural Resources led the falls, declining 9.47 per cent, followed by Rangold Resources, down by 8.64 per cent and Antofagasta, which dropped by 8.01 per cent.

Banking stocks continued to climb, led by Lloyds TSB, which rose seven per cent over the day.

The bank confirmed this morning that the government will be the major shareholder in Lloyds Banking Group, the newly created 'superbank' created through the merger of Lloyds TSB and HBOS.

The falls have erased gains made in the new year, as fears over the economy hit investor confidence.

Ryan Kneale, market analyst at BetsForTraders.com, said: "Despite some good gains in banking stocks, the major European indices are struggling to find their feet today, as elsewhere mining and oil stocks appear to be in trouble again.

"Last week's brief rally has been well and truly halted and fears are running high that demand for commodities will continue to fall during the early part of 2009."