London’s blue-chip stocks turned lower as George Osborne acknowledged the market turmoil by postponing plans to sell the government’s last chunk of Lloyds.
FTSE 100 was 36 points lower at 5,954 with US markets pointing to a flat start after a 222 points fall by the Dow Jones Industrial Average overnight.
US central bank the Federal Reserve also acknowledged the markets were tricky at the moment, comments that unsettled Wall Street.
Lloyds edged 1.5% lower to 63.9p after the Chancellor’s decision while Royal Bank of Scotland (LON:RBS) fell 2% to 250.6p.
By Twitter, Osborne said: "With these turbulent financial markets now is not the right time to have that sale. We will sell Lloyds to the British people but we will do so when the time is right."
Resources stocks were the best performers with Anglo American (LON:AAl) up 9% to 275.6p on a respectable production update. More costs are to be cut in its iron ore business it added.
Copper miner Antofagasta (LON:ANTO) picked up 2% in sympathy while gold proxy Randgold Resources (LON:RRS) was 0.5% up at 4,840p.
Shell (LON:RDSB) led the oilers with a 1.2% gain to 1,479p ahead of the vote by BG (LON;BG.) ownerson the £35bn deal.
British Gas owner Centrica (LON:CNA) took a heavy hit as SocGen downgraded to sell from hold, while rival big six gas supplier SSE lowered its prices by 5.3% from April.
Shares in Centrica fell 4% to 201.4p, while SSE (LON:SSE) was flat at 1,428p.
Hire firm Ashtead (LON:AHT) down 56p at 910p was hit by a warning from a rival in the US, while airline Flybe (LON:FLYB) was under pressure after it pointed to disruption after the Paris attacks. Shares dropped 4% to 80.6p.
Down a league, Victoria Oil & Gas (LON:VOG) rose 14% to 30.8p as it expects to increase gas supply to customers around the Cameroon city of Douala by 30% in 2016 and drill two new wells on its Logbaba field.
While the prospect of Solo Oil (LON;SOLO) producing from a new prospect on the Isle of Wight lifted it 5% to 0.284p. Partner UK Oil & Gas didn’t fare so well and dropped 2% to 1.35p.
Away from oil and gas, e-commerce platform blur (LON:BLUR) was in favour again after encouraging metrics yesterday, adding 11% to 15.5p.