FTSE ends six-day rally as commodities slide

By Simon Falush

LONDON (Reuters) - The top share index closed 2.8 percent lower on Wednesday, ending a six-day winning streak, as sliding oil and metal prices knocked commodity stocks, with BP (BP.L) also hit by worries about its earnings outlook.

The FTSE 100 .FTSE closed down 131.41 points at 4,507.51, after rising 10 percent in the previous six sessions.

"I wouldn't read too much into the rally over the last couple of weeks, so I won't read too much into this fall," said Graham Secker, UK equity strategist at Morgan Stanley.

"Investors are struggling to decipher the positives and negatives and work out which side to fall down on."

U.S. ADP data which showed private employers shed 693,000 employers weighed on sentiment, dragging stocks lower in Europe and the U.S.

BP shares fell by 5.6 percent following rumours the oil major was telling analysts that its fourth quarter earnings would be lower than expected, three dealers said. The company denied the rumours.

But the wider sector was also dented as crude prices dipped more than 7 percent after a U.S. government report showed inventories of crude rise much more than expected in the world's biggest energy consumer.

Royal Dutch Shell (RDSa.L), Tullow Oil (TLW.L), Cairn Energy (CNE.L) and BG Group (BG.L) fell between 3.3 and 8.4 percent.