FTSE: 5,206.82 (-15.78) Mid-250: 9,703.13 (-64.75) Small Cap: 2,715.26 (-6.85)BRITAIN'S TOP shares index hit a seven-week closing low yesterday, led lower by energy stocks on worries slower US growth would crimp demand for crude, while Commerzbank's funding concerns hit Royal Bank of Scotland and Lloyds Banking Group.

The US economy grew more slowly than previously expected in the third quarter, and the news hurt UK-listed oil and gas shares, which fell 1 per cent.

RBS and Lloyds also weighed on the market, down 5.8 per cent and 4.4 per cent respectively, with traders citing concerns that the two banks may need to raise more funds after sources said Germany’s Commerzbank may need €5 billion more capital.

Apart from slower US growth, mounting concerns over the euro zone sovereign debt crisis and the downbeat corporate outlook added to investors’ concerns.

FTSE 250-listed Thomas Cook lost three-quarters of its value after the tour operator said it had initiated fresh talks with its banks after a further deterioration in its trading performance and cash position left it in danger of defaulting on the terms of its borrowing. Peer TUI Travel shed 9.2 per cent.

Big Yellow Group, the UK’s largest operator of self-storage warehouses, rose 9.8 per cent to 239.4p as occupancy rates grew in the first half. The company announced an interim dividend of 4.5p. Shares declined 8.1 per cent yesterday.

International Consolidated Airlines, the holding company of the Iberia-British Airways merger, dropped 5.2 per cent to 132p. Competitor Deutsche Lufthansa said it would withdraw at least one-fifth of its cargo capacity in the first half of next year to counter an anticipated slowdown in demand.

British Land rose 1.5 per cent to 461p after Bank of America upgraded it to “buy” from “neutral”. Separately, UBS cited British Land as the “most defensive of the UK majors”.

The FTSE 100 fell for the seventh straight session and closed down 0.3 per cent at 5,206.82, after trading as high as 5,281.95.

The UK benchmark has lost almost 12 per cent this year on worries over slower global growth and the euro zone debt turmoil.

Growing concerns over the currency bloc’s debt problems have increased volatility in the FTSE 100 since August, as traders did not want to hold their position for too long for fear of being caught out. – (Reuters, Bloomberg)