Senior European Union (EU) officials are set to meet later on Monday to discuss the eurozone's continuing debt woes.
The FTSE has plunged into negative territory after disappointing US jobs data reignited fears over the economic recovery.
The euro has fallen against the dollar amid sovereign debt concerns and fears Greek contagion could spread to Italy.
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JP Morgan Chase is to pay $228m (£143m) to settle claims it rigged transactions of municipal bonds.
The FTSE has had a bright start to trading with a host of financials enjoying early gains.
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The European Central Bank has hiked its benchmark interest rate to 1.5% as expected.
The downgrading of Portugal's debt to 'junk' status by Moody's earlier this week has led to renewed criticism, this time from the European Commission (EC), of the role and behaviour of credit ratings agencies.
The FTSE 100 fell in mid-morning trading on Wednesday as European markets absorbed Moody's downgrade of Portuguese debt to 'junk' status.