THE FTSE 100 Index dipped sharply amid mixed powerhouse service sector figures from UK and the US.
The closely-watched CIPS/Markit purchasing managers' index (PMI) reported a marginal pick-up in activity last month for the UK services sector, with a reading of 55.6 compared to 55.5 in December - which was stronger than the long-run survey average. A reading above 50 signals growth.
The FTSE 100 Index was down 84.9 points to 5837.1, despite the oil price jumping almost two US dollars to just over 34 US dollars late in the session.
CMC Markets analyst Jasper Lawler said despite oil rising higher today "the overall weakness in commodities remains a major point of concern across markets".
Germany's Dax and France's Cac 40 were both down by around 1.5%. In New York the Dow Jones Industrial Average was flat in early trading.
Traders were also downbeat after an American survey said the US services sector grew in January at the slowest rate in nearly two years.
The pound was up two cents against the US dollar at 1.46, as it made gains on the back of the positive news from the UK services sector.
Sterling was flat against the euro at 1.32.
The stock market debut of Clydesdale and Yorkshire Bank saw the lender rise to 192p in conditional trading as it pressed ahead with its £1.6 billion flotation despite market volatility and after being hit by a last-minute delay.
The Glasgow-based lender - now known as CYBG - was forced to put the brakes on its initial public offering for 24 hours on Tuesday following a "specific request" for more information from a credit ratings agency.
The high street bank is being spun out of the National Australia Bank (NAB), which saw its shares come under pressure on the Australian market after the initial float price for Clydesdale Bank came in at the low end of estimates, at 180p.
Retail broker Hargreaves Lansdown saw its shares slip, down by more than 2%, or 32p to 1285p, despite shrugging off stock market turmoil since the start of the year to report a rise in first half pre-tax profits.
The financial services firm saw profits rise by 6% to £108.1 million, but investors were put off after it confirmed its operating margins were coming under pressure.
There were also falls for other financial firms, with Barclays the biggest faller in the top flight down 8.2p to 165.6p, and Asia-focused Standard Chartered 18.5p lower to 414.5p.
Royal Dutch Shell saw its shares climb 2p to 1437.5p, ahead of its update to the market on Thursday. The oil giant looks set to come under further pressure from plunging oil prices, which sparked rival BP to cut thousands of jobs and post its largest annual loss for 20 years on Tuesday.
The biggest risers on the FTSE 100 Index were Anglo American up 21.6p at 273.7p, Rio Tinto up 67.5p at 1685p, Glencore up 2.8p at 86p and Antofagasta up 10.1p at 375.6p.
The biggest fallers on the FTSE 100 Index were Barclays down 8.2p at 165.6p, Aberdeen Asset Management down 10.7p at 224.3p, Shire down 168p at 3717p and Standard Chartered down 18.5p at 414.5p.
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