The FTSE 100 Index fell 21.8 points to 6002.1, or 0.4 per cent, after China moved to fight inflation by raising the reserve requirements for the country’s biggest lenders.

This caused metal prices to fall, and with them the market value of miners.

The top three fallers were Fresnillo, down 4.2 per cent to 1492p, Anglo American, off 3.2 per cent at 3300p and Antofagasta, behind 2.4 per cent at 1502p.

Slipping oil prices also impacted the top tier, with BP shedding 4.2p at 499.5p, Royal Dutch Shell off 12.5p at 2107.5p and Cairn Energy down 1.4p at 453.3p.

Microchip maker Arm Holdings continued to benefit from strong Intel sales figures, topping the risers board with shares up 5.3 per cent to 530.5p Bovis Homes sparked share gains for the housebuilding sector after it said last year’s profits were expected to beat market forecasts.

The group reported average selling prices rose four per cent last year and announced it will restart dividend payments for the first time since mid-2008.

Bovis shares rose nearly three per cent or 12p to 437.2p. Taylor Wimpey added 0.7p to 33.9p and Redrow gained 2.7p to 130.1p.

Car dealership Lookers saw shares climb nearly four per cent, up 2.3p to 64.3p, after the group said it will deliver results at the top end of analysts forecasts after its recent strong run continued through the fourth quarter.

A profit warning from building services group T Clarke sent shares plunging 18 per cent, down 23p to 102p, as it said markets remain under pressure after the recession, compounded by last month’s snow.

The pound was up against the US dollar, at 1.59, after disappointing US retail sales figures and a surprise drop in consumer confidence. The pound edged up against the euro, at 1.19.