The FTSE 100 started higher in early trading, as the index attempted to bounce back after losing 1.9% so far this week.
The UK's blue-chip index climbed 36 points in the first hour this morning, but has since given up those gains. At 10.30am, the FTSE 100 was down by 26.88 points (-0.53%) to 5001.27. The mid-cap FTSE 250 index was faring better, up 28.59 points (+0.31%) to 9384.76.
It has been a similar scenario in Europe so far on Wednesday, where the German DAX was up by 5.77 points to 5874.32, and in France the CAC 40 had climbed by 6.68 points, to 3387.04.
Once again BP is the standout blue-chip stock, heading the FTSE's 'loserboard' after having shed 13.4p (-3.28%) to 395.5p. Despite a brief upturn in its share price after making some improvements to its capture of the leaking oil, its price has once again slipped below 400p - levels not traded at since October 2008.
Other stocks struggling include Cable & Wireless, which was 2.95% down at 80.60p and Johnson Matthey which was 2.08% lower at 1462p. Tullow Oil (1.27% to 1090p) and Royal Dutch Shell 'B' (-1.14% to 1689p) completed the bottom five stocks as at 10.25am.
Communications group Cable & Wireless fell after concern over its dividend outlook. Analysts at Evolution Securities said 'the company needs a rapid revenue recovery to build a credible long-term case for the 8 cents dividend', adding that '...selling assets at a premium looks the only credible way to support the valuation and dividend'.
At the opposite end of the leaderboard, heading the FTSE at mid-morning was InterContinental Hotels Group, up 21p (+1.97%) to 1088p, followed by Admiral Group (+1.81% to 1348p) and Compass Group (up 1.56% to 552p).
Meanwhile the UK's trade deficit widened in April, affected by the Icelandic volcanic eruption. The ONS confirmed that the UK's goods deficit rose from £7.26 billion to £7.28 billion - against consensus expectations of a figure closing to £7 billion. This follows March's unexpectedly sharp rise in the deficit to £7.5 billion.
Today also sees the start of the Bank of England's MPC meeting, before tomorrow's interest-rate decision. Looking ahead to the US session, the standout release is the Federal Reserve's Beige Book of economic conditions, which is out at 7pm (London time).
