The FTSE 100 Index failed to set a new 18-month high yesterday after a negative opening on Wall Street hit market morale.

The Footsie had drifted around the break-even mark for much of the session before a lacklustre start to trading in New York pushed it 18.8 lower to 4499.3 by the close.

Banks were under pressure, with Barclays down 10p at 520p, HBoS off 6p at 755p, HSBC down 2p at 872p, and Lloyds TSB weakening 3p at 469p.

Insurer Aviva managed healthy gains after the Norwich Union owner benefited from its upbeat comments on prospects for this year. Shares outstripped the rest of the insurance sector, rising 6p to 538p, while Friends Provident rose p to 146p.

One of the brightest performers in the top flight was recruitment specialist Hays, up 1p to 132p, after a positive broker note.

Media groups put pressure on the top flight, however, as FT owner Pearson slipped 5p to 647p, Reed Elsevier fell 4p to 703p, and Emap weakened 8p to 946p.

Outside the Footsie, pubs group JD Wetherspoon was off 5p at 273p as trading figures offered the first sign that a recent reduction in its rate of openings had left a mark on sales growth.

Materials specialist British Vita was another second-tier faller, easing 14p to 255p, after warning that annual profits would be hit by an accounting error at its non-wovens division in the US.

Civil engineer John Laing suffered after reporting lower than expected traffic levels on a flagship Private Finance Initiative road project. Shares fell 1p to 190p.

On a brighter note, shares in online auctioneer QXL Ricardo more than doubled after the group told investors it was poised to break into profit without the need to raise more funds or sell assets. Shares in the pan-European operator surged 351p to 509p.

Leisure group Luminar rose three per cent following media reports that it was in talks with Accor to convert some of its nightclubs into casinos. Shares strengthened 14p to 471p.