The FTSE has lost further ground this morning and is down 14.3 points to 4989.4 points, led by Morrison Supermarkets.
The ailing firm has slipped 2.5p to 180.5p after issuing its fifth profit warning in less than 12 months, which today says 2005 profits will be between £50m and £150m, and between £225m and £275m as analysts had expected.
Utilitiy company Severn Trent, meanwhile, has bagged 12p to 1021p, despite a 21% decline in second-half net income to £60.7m because of increased pension charges.
UK bank Standard Chartered also advanced 10.5p to 1049p. The firm has opened its first retail branch in Japan.
In Tokyo, the Nikkei 225 Stock Average index also fell 1.1% to 11,160.88, at its close early this morning, paced by exporters, including Canon, following concerns the US Federal Reserve will point towards an increase in interest rates.
Digital camera maker Canon dropped 1.9% to 5,830 yen as it generates 75% of its business abroad while car mnufacturer Honda also dropped 1.3% to 5,270 yen.
Kyocera, the manufacturer of ceramic packaging for semiconductors, declined 1.4% to 8,200 yen too as the firm receives in excess of a quarter of its sales from the US.
But on the winning side, construction firm Fujita Corp climbed 17% to 153 yen, after Goldman Sachs Group said it intends to lead an investment group to purchase a majority stake in Fujita.
And in the US yesterday, the Dow Jones Industrial Average index shed 6.21 points to 10476.86 points at its close last night, led by Merck & Co as the pharmaceuticals firm shed $0.45 to $31.63.
General Motors advanced $1.29 to $32.02, on the back of rumours suggesting billionaire Kirk Kerkorian could increase his offer for shares in the company.
Caterpillar also advanced $2.05 to $96.58, after it recorded higher than expected earnings.IFAonline
What made financial headlines over the weekend?
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch