The FTSE 100 Index has lost 22.70 points, or 0.4%, to 5,647 points this morning, led by PartyGaming on reports two of its founders will sell 8% of the group.
PartyGaming has dropped 3.48% to 118p. Two founders of its founders are expected to sell more than 8% of group in an accelerated book-building process believed to be starting today.
Vodafone has lost 3.50p, or 2.8%, to 119.75p on reports buyers of the stock today are not eligible for a dividend of 3.87p.
BAA has declined 14.50p, or 1.5%, to 933.50p as the shares traded without the right to a payout of 15.25p.
Meanwhile, confectionery group Cadbury Schweppes rose 1.29% to 509.50p after it forecast good revenue growth for 2006, at the upper end of expectations.
In Japan, the Nikkei 225 Stock Average dropped 288.85 points, or 1.9%, to 15,096.01 points, its lowest close since 30 November, as US Federal Reserve bankers' comments on inflation reinforced speculation they will keep raising interest rates.
Sony dropped 110 yen, or 2.2%, to 5,000, Honda lost 150 yen, or 2%, to 7,200 and Canon fell 90 yen, or 1.2%, to 7,760.
Orix, Japan's largest non-bank financial firm, slumped 1,300 yen, or 4.3%, to 29,150. The company has 20bn yen ($178m) invested in funds run by Yoshiaki Murakami, a shareholder activist arrested on 5 June for insider trading. The stock has lost 9.7% since news of the scandal broke.
In the US, the Dow Jones industrial average was down 46.58 points, or 0.42%, to end at 11,002.14 points after being below the 11,000 mark for most of the afternoon.
JPMorgan shares slumped 1.4%, or 59 cents, to $42.38, while Bank of America's stock was down 0.4%, or 21 cents, at $48.53.
Industrial stocks also tumbled, with Boeing down 1.8%, or $1.48, at $80.65 and United Technologies down 2.3%, or $1.40, at $60.05.
General Motors warned shareholders that meeting the automaker's cost-savings target would be very difficult and its shares fell 3.1%, or 80 cents, to $25.25.IFAonline
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week