The FTSE 100 Index closed down 108.8 points to 4530.7 after a six-day winning streak came to an end.

The feel-good factor that followed Barack Obama's US presidential victory dimmed after poor economic data on both sides of the Atlantic.

Wall Street enjoyed its best election day session since 1984 on Tuesday, but the Dow Jones Industrial Average fell nearly 2 per cent in early trading on Wednesday.

In the UK, the fastest contraction of the service sector in 12 years reinforced expectations that the Bank of England will announce an aggressive cut in interest rates of as much as 1 per cent on Thursday.

The Chartered Institute of Purchasing and Supply said the sector - which includes businesses from cafes to banks and makes up three quarters of British economic output - shrank at the fastest rate since 1996.

Leading the fallers were mining stocks, with Eurasian Natural Resources down 49p to 359p, or 12 per cent Kazakhmys down 43p to 354.25p and Vedanta Resources 91.5p lighter at 908p.

Heading in the opposite direction was transport firm FirstGroup after half-year profits jumped 44 per cent to £107.1 million.

Shares were up 14.5p to 459.75p, while the soothing of investor fears about the impact of the recession on the public transport sector caused South West Trains rival Stagecoach to improve 9.7p to 193.9p.

In the retail sector, Next shares recovered from a weak start to stand almost 6 per cent or 64p higher at 1189p.

Marks & Spencer was up by 6.25p to 244.75p - or 3 per cent - but Primark owner Associated British Foods failed to find favour with investors as shares lost 1.5p to 696.5p.

The leading FTSE riser was Royal Bank of Scotland, up nearly 6 per cent as the firm announced plans for a bond issue guaranteed by the Government.

Winners: RBS up 3.8p at 69p, Next ahead 64p at 1189p, Barclays up 10p at 195.9p and Stagecoach ahead 9.7p at 193.9p.

Losers: ENR down 49p at 359p, Kazakhmys off 43p at 354.25p, Wood Group down 29p at 253p and Vedanta Resources off 91.5p at 908p.

© Independent Television News Limited 2009. All rights reserved.