The London Stock Exchange lost 6 per cent to 552.5p as it traded ex dividend and after weaker than expected trading figures from German rival Deutsche Boerse.

DB said last night that turnover in its Xetra electronic orderbook fell 50 per cent year-on-year in November. Trading in ordinary equities also dived in November.

Insurers Old Mutual and Aviva both lost 7 per cent after strongish gains in recent days amid worries over their exposure to toxic corporate bonds. Citigroup fell 22 per cent in the US last night for much the same reason.

Miners continued to fall for a second day with Xstrata down 4 per cent.

The FTSE 100 lost 5 points to 4060 by 11am.

Tesco gained 7 per cent after it unveiled like for like sales had fallen to 2 per cent in the past quarter, better than many had feared.

Vedanta Resources defied the mining sector, rising 11 per cent after it began a $250 million share buyback

In the tiddlers, Stylo, the shoe retailer, whose brands include Barratts and Priceless, fell 21 per cent to 11p after it warned of a sudden sales slump in November so it had begun massive sales in the run up to Christmas which would hit margins.

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