The FTSE100 has given up most of its strong opening gains this morning, with financials and miners among the early strugglers.
After being up 1% early, the blue chip index is currently just 0.35% (18.80 points) higher to 5431.60.
Carphone Warehouse is the best of the bunch, 4.25% ahead to 186.60; while a Citigroup upgrade to 'buy' has boosted AMEC, 2.99% up to 912.50.
Speculation on the future of Marks & Spencer boss Stuart Rose has continued to spook investors, with M&S down 4.63% to 216.50.
Royal Bank of Scotland is the worst of the financials, down 4.29% to 197.40. Barclays is also in decline early.
Reports European regulators are looking at the possible Rio Tinto and BHP Billiton tie up has hit both miners and the sector. Rio is 3.09% lower to 5427 and BHP is behind 2.1% behind to 1726.
In New York, trading was closed on Friday for the US Independence Day holiday.
In Tokyo, Japan’s Nikkei 225 snapped its longest losing streak in 54 years on Monday, closing 122.15 yen (0.92%) higher to 13,360.04.
On a day when G8 world leaders arrived to start the 2008 Hokkaido Summit, Japanese investors poured back into the market after 12 straight days of losses for the benchmark.IFAonline
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