FTSE down 25 points

Energy and banking firms were out of favour with investors today as the London market slid lower.

Lower crude oil prices and downbeat broker comments hit the likes of Royal Dutch Shell and BP, while a profit warning from France's Societe Generale frayed nerves over banking stocks.

The FTSE 100 Index was 25.2 points down to 5473.5 at the close, despite early gains on Wall Street.

On the currency markets, the pound enjoyed a better day, nearing $1.63 and passing above €1.12 as a Bank of England policymaker gave a strong hint that rates could soon move higher.

But equities struggled to get out of the blocks after Asian markets were rocked by Chinese moves to cool growth by forcing banks to hold more reserves.

There were further losses for oil giants after prices retreated below $80 a barrel to a year low on fears the China move will dampen global prospects, while markets also reacted to a sharper than expected rise in US stockpiles.

Shell - cut to underweight by brokers at Morgan Stanley - was a prominent faller, off 25.5p to 1798.5p or 1.5%. Rival BP dropped 7.2p to 626.6p, while BG Group was 6p cheaper at 1229p.

Meanwhile SocGen spooked investors after saying it would make just a "slight" fourth-quarter profit after having to make hefty asset writedowns because of "contrasted signals" from the US property market.

This knocked several banks in London, with Barclays down 2.9p to 313.7p and HSBC losing 10.7p to 717.7p.

Royal Bank of Scotland bucked the trend with a 0.82p rise to 35.6p or 2% on comments yesterday by boss Stephen Hester on the faster than expected progress made so far in turning around the part-nationalised bank.

Dairy Milk maker Cadbury was also on the front foot with a 12.5p rise to 789.5p despite reports that Italian confectioner Ferrero had pulled out of a possible rival bid for the business.

But property firm British Land was another top-flight faller as the stock turned ex-dividend, meaning shareholders are not entitled to the latest payout. Shares were down 7.6p to 466p.

In UK retail news, shares in high street baker Greggs were 10p lower at 405p after it announced a rise of 1.1% in like-for-like sales for the four weeks to December 26.

Meanwhile video games retailer Game Group edged higher in the FTSE 250 after yesterday's 6% fall following a profit warning. Shares were up 0.1p to 100.1p.

Insulation firm SIG was the top riser in the FTSE 250 as the company held profits forecasts for 2009 despite tough markets and little clear prospect of recovery for the construction industry in 2010. Shares were rewarded with a 10% rise, gaining 11.8p to 128.6p.

The biggest Footsie risers were Schroders ahead 35p at 1340p, RBS ahead 0.82p at 35.6p, Petrofac up 22p at 1006p and Admiral up 25p at 1163p.

The biggest Footsie fallers were Randgold Resources down 145p at 5035p, London Stock Exchange off 16p at 680p, Icap down 10p at 429.7p and Lonmin down 42p at 2027p.