The FTSE 100 Index fell 34 points, or 0.6%, to 6,099 points today, led by weaker financial stocks and a dreary start in the US.
Old Mutual led declines by financial stocks, down 2.68% to 191p, while HBOS fell 1.65% to 952p and Lloyds TSB dropped 1.60% to 522p.
HSBC declined 1.09% to 954.50p, Standard Chartered dropped 1.19% to 1,416p and Barclays fell 0.81% to 676p, all on concern they could become embroiled in a bidding war for Korean credit card group LG Card.
Crude prices close to $75 a barrel pushed Shell down 0.05% to 2,042p, while BP fell 0.07% to 711.50p, Cairn Energy dropped 0.83% to 2,419p and BG declined 0.32% to 782.50p.
But higher metal prices took Xstrata up 1.96% to 2,128p and Anglo American up 0.04% to 2,461p.
In the US, the Dow Jones industrial average is down 4.63 points, or 0.04%, at 11,342.82 points, led by falling crude oil prices and shares of energy companies.
Exxon Mobil has dropped 0.38% to $64.75 and ConocoPhillips has fallen 1.86% to $71.15.
Xerox has fallen 5.1% to $14.07 after it reported a drop in quarterly profit.
Meanwhile, shares of Caterpillar have risen 0.9% to $78.55 after it reported a 48% rise in first-quarter earnings and raised its full-year forecast.IFAonline
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