The FTSE 100 Index has retreated 16.30 points, or 0.3%, to 5887.10 points this morning, led by financial stocks.
Standard Chartered has dropped 1.05% to 1,316p, Northern Rock has fallen 0.72% to 1,109p and HSBC has declined 0.84% to 945.50p.
LogicaCMG has lost 6.4% to 161.5p after it agreed to buy Swedish rival WM-data for $1.67bn to expand in the Nordic region.
ISoft has plunged 3.7% to 46.25p on reports it has "no believable plan'' for the release of its so-called Lorenzo health-care system upgrade.
PartyGaming is leading the risers, up 2.93% at 114.25p, as newspaper rumours suggest it is the main contender for Victor Chandler's Gibraltar-based betting empire.
In Japan, the Nikkei 225 Stock Average declined 136.94 points, or 0.9% to 15,969.04 points, led by exporter stocks after consumer confidence dropped in the US.
Toyota dropped 120 yen, or 1.9%, to 6,370, Honda Motor tumbled 80 yen, or 2%, to 3,880 and Sony declined 70 yen, or 1.3%, to 5,240.
Acom, Japan's second-largest consumer lender, slumped 230 yen, or 4%, to 5,590 and Promise, the nation's biggest, fell 120 yen, or 2.1%, to 5,560.
In the US, the Dow Jones industrial average gained 21.69 points, or 0.19%, to 11,356.65 points on Friday as news of the progress in Microsoft's multibillion-dollar stock-buyback programme pushed the software maker's shares higher.
Microsoft rose 3.4% to $25.53, its highest in nearly four months, after it said it expects to complete less than one-quarter of a $20bn share buyback this week.
US crude oil futures ended up more than $1 on Friday amid worries Iran would not respond favorably to incentives aimed at resolving a dispute over its nuclear research.
Exxon Mobil rose 1% to $68.73 and oil services company Schlumberger climbed 1.7% to $63.38.
Ford Motor slipped 2% to $8.01 after it said it would cut vehicle production for the rest of the year as it accelerates a turnaround plan which has not yielded results fast enough.IFAonline
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till