The FTSE 100 started with a flurry of activity this morning but has continually slipped lower, currently down 39.8 points, or 0.65%, to 6038.9.
Northern Rock is expectedly leading the losses, after announcing the sale of approximately £465m of commercial secured loans to Lehman Commercial Mortgage Conduit late yesterday.
The lender is currently 21 points lower, or 2.93%, to 695.
A JP Morgan downgrade has caused DSG International to slide, down 4.2 points, or 2.58%, to 158.8.
Kingfisher has also lost ground, 4.7 points lower, or 2.33%, to 196.8.
A positive recommendation from Morgan Stanley has led to leisure group Whitbread posting the best results so far, currently up 11 points, or 0.755, to 1486.
In New York, the Dow Jones staged a late rally to earn conservative gains on Monday, closing the session up 42.27 points, or 0.32%, to 13121.35.
Alcoa, the world's second-largest aluminium producer, led the gains capitalising on an overall positive market, up 1.03 points, or 3.09%, to 34.32.
The world's largest maker of airplane instruments, Honeywell International, also lifted– up 1.36 points, or 2.5%, to 55.82; while Caterpillar crept to a nice result – finishing 1.41 points higher, or 1.94%, to 74.05.
It was a poor day at the office for computer stocks; with IBM struggling, 1.68 points down, or 1.51%, to 109.22 and Hewlett-Packard 0.57 points lower, or 1.21%, to 46.58.
In Tokyo, a weakening of the yen led exporters to post solid results, with the Nikkei up 168.86 points, or 1.07%, to 15,901.34.
NGK Insulators, the diesel particulate filters manufacturer, surged 260 points, or 7.88%, to 3,560 – after a lift in its target price from Credit Suisse.
Chiyoda Corp also had a strong day, up 125 points, or 6.31%, to 2,105; while trading company Marubeni was 52 points higher, or 6%, to close on 918 yen.
Japanese confectionery and pharmaceutical maker Meiji Seika lost the most ground, down 14 points, or 2.72%, to 501.
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