The FTSE's bright early start has evaporated this afternoon with 3i and Rolls-Royce blighting a strong session for financials.
At 3.20pm, London's blue chip index dived 19.49 points, or 0.50%, to 3,869.57.
A downgrade from ratings agency Standard & Poor's has hit private equity group 3i, down 5.97% to 204.75.
Rolls-Royce is among the worst performers after noting near-term troubles in helicopter engine sales. The auto giant is 5.61% lower to 277.50.
BAE Systems is also behind, 4.14% down to 388.25.
Financials are still leading the way this afternoon, with RBS 14% higher to 22.00 after it emerged the bank is ready to sell up to a quarter of its businesses.
Insurers Legal & General and Friends Provident are powering ahead, up 8.33% to 37.70 and 5.3% to 77.50 respectively.Investment Week
What made financial headlines over the weekend?
290,000 already affected
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension