FTSE ends lower as commodities weigh

By Atul Prakash

LONDON (Reuters) - The top share index closed down 0.4 percent on Wednesday as oils and mining stocks tracked sliding commodity prices, offsetting banks that gained on strong results from U.S. lender Wells Fargo.

The commodity-heavy FTSE 100 index closed down 21.3 points at 5,150.6 after trading nearly 2 percent lower earlier in the session. The benchmark index has lost more than 20 percent so far this year.

Mining and oil stocks were the biggest losers on the FTSE 100 as they tracked lower commodities prices. Crude oil tumbled after a government inventory report showed an unexpected leap in crude supplies last week.

BP, Royal Dutch Shell, gas producer BG Group, Cairn Energy and Tullow Oil slipped between 2.7 and 4 percent.

Weaker metals prices on rising stocks and concerns about demand weighed on mining shares. BHP Billiton, Anglo American, Vedanta Resources, Lonmin, Xstrata, Eurasian Natural Resources and Rio Tinto fell between 2.4 and 4.9 percent.

Banking shares rebounded after Wells Fargo, the fifth-largest U.S. bank, reported unexpectedly strong results and raised its dividend despite a surge in bad loans.

Barclays, Standard Chartered, Lloyds TSB and HSBC rose between 1 and 4 percent.

"There has been a glimmer of hope after Wells Fargo reported positive results. This has given us some much needed confidence, with many of our clients covering their short positions," said Andrew Turnbull, director at Blue Index CFDs.