The FTSE 100 index has lost 28.6 points, or 0.5%, to 5,856 points this morning, led by AstraZeneca.
Drug giant AstraZeneca has slipped back 1.04% to £32.30 after ING Financial changed its “buy” recommendation to “hold” as it awaits key developments over the next few months.
William Morrison has fallen 0.62% to 200.5p after HSBC rated it as "overweight" with a price target of 240p.
Sainsbury has been started with an 'underweight' recommendation and has fallen 0.22% to 334.25p.
In Japan, the Nikkei 225 Stock Average added 66.88 points, or 0.4%, to 15,638.5 points as a US manufacturing report fuelled speculation the Federal Reserve might refrain from raising interest rates.
Sony gained 90 yen, or 1.8%, to 5,120, Advantest jumped 280 yen, or 2.4%, to 12,070 and Nintendo climbed 1,160 yen, or 6.1%, to 20,280.
Nomura Holdings rose 50 yen, or 2.3%, to 2,235, Daiwa Securities Group gained 49 yen, or 3.5%, to 1,444 and Yamada Denki added 180 yen, or 1.5%, to 11,990.
Orix, Japan's largest non-bank financial company, climbed 1,320 yen, or 4.7%, to 29,310. Goldman Sachs recommended investors buy Orix shares because profit from its property investment business will boost fiscal first-quarter earnings.
In the US yesterday, the Dow Jones industrial average gained 77.80 points, or 0.70%, to end at 11,228.02 points as mild economic data increased optimism about the interest-rate outlook and positive news about Citigroup gave investors a reason to buy bank shares.
Citigroup climbed 1.5%, or 73 cents, to $48.97. The gain followed news over the weekend suggesting Citigroup's chairman has rejected the idea of breaking up the financial services giant.
Shares of JPMorgan Chase climbed 2.9%, or $1.21, to $42.87 and Bank of America advanced 1.5%, or 71 cents, to $48.81.
Meanwhile, General Motors fell 1.3%, or 38 cents, to $29.41 and helped drag on the Dow. Earlier, the stock hit a session high of $30.39 after news the board of French automaker Renault is set to discuss opening its partnership with Nissan to include US-based General Motors.IFAonline
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