FTSE: 5,525.54 (–22.52) Mid-250: 10,428.37 (–40.72) Small Cap: 2,815.89 (–7.89)UK STOCKS fell after a meeting of European Union finance ministers was cancelled yesterday, raising concern an agreement may be delayed at the region's debt-crisis summit today.

The FTSE 100 Index slipped 0.4 per cent at the close in London, after earlier rising as much as 0.5 per cent and tumbling as much as 1.5 per cent.

“Today’s session was volatile as investors panicked at one stage thinking that tomorrow’s summit had been postponed once again,” said Angus Campbell, head of sales at Capital Spreads in London.

“Risk aversion crept in ahead of tomorrow’s crucial European Union summit with some investors positioning themselves in case of the worst-case scenario,” he said.

European leaders are holding a second summit in four days today in a bid to contain the debt crisis and avoid contagion spreading to Italy and Spain. They seek an agreement to bolster the region’s rescue fund, recapitalise banks and provide debt relief to Greece.

Stocks extended losses after the UK government said a meeting of EU finance ministers scheduled for today was cancelled.

Reckitt Benckiser lost 3.4 per cent to 3,330p after the company forecast lower sales and profit at its pharmaceutical unit in the fourth quarter because of a price increase for its Suboxone tablets and US health-care policy changes.

ICAP dropped 3.8 per cent to 410.8p after UBS lowered its recommendation for the world’s largest broker of transactions between banks.

Tullett Prebon, which was also downgraded to “sell”, slid 3.3 per cent to 368.8p.

BP paced advancing shares, gaining 4.4 per cent to 457.2p. Europe’s second-largest oil company reported adjusted third-quarter earnings of $5.3 billion, beating the average analyst estimate of $5 billion in a Bloomberg survey.

BG rose 3.8 per cent to 1,378p after Britain’s natural-gas producer reported a 25 per cent jump in third-quarter earnings.

ARM gained 2.5 per cent to 590p. The UK designer of chips forecast sales to rise about 21 per cent to about $763 million.

Vectura, a UK developer of inhaled drugs, plunged 21 per cent to 67.5p after partner Novartis said a US regulatory review of an experimental medicine would be delayed. – (Bloomberg)