The FTSE 100 index fell 11.90 points, or 0.2%, to 6,233 points today after continuing concerns about the sub-prime mortgage lenders sector caused a poor start on Wall Street.
J Sainsbury dropped 2.11% to £5.32 on reports KKR, which is backing Stefano Pessina’s offer for Alliance Boots, may have too much on its plate to pursue its interest in the supermarket chain.
Marks & Spencer fell 1.74% to £6.79 and DSG International declined 3.70% to £1.69.
Alliance Boots rose 7.15% to £9.96 in response to the deputy chairman's unprecedented £10 per share offer on Friday.
ICI added 5.44% to £4.89 on the back of speculation Akzo Nobel may be mulling an offer.
Anglo American gained 1.70% to £25.09 after Merrill Lynch added the group to its Europe 1 List. Rio Tinto advanced 0.26% to £27.15 and BHP Billiton added 0.92% to £10.39.
In the US, the Dow Jones industrial average is unchanged at 12,276.32 points, as worry about growing losses in the sub-prime mortgage market offsets optimism from corporate deals totaling more than $20bn.
Countrywide Financial, the largest US mortgage lender, has fallen 2.6% to $35.16 after it said it had minimal exposure in February to loans of less than prime quality, but may still experience fluctuating earnings in the near term due to turmoil in the sub-prime market.
Accredited Home Lenders Holding has dropped 17.4% to $13.01 and NovaStar Financial has fallen 10.3% to $4.70.
Boeing has added 1% to $90.38 after Continental Airlines said it ordered five Boeing 787 Dreamliners worth about $900m.
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An added tier of asset management can of course deliver additional benefits for certain investors, writes Graham Bentley - just be sure you can justify it to the regulator and, especially, the client