The FTSE 100 Index fell 8.9 points to 5,892.2 today as Friday’s optimism, fuelled by positive jobs data in the US, faded amid fresh worries over Greece’s ability to secure a new £107billion bailout deal.
Commodity stocks also took a hit after the International Monetary Fund warned the problems in Europe could cut resource-hungry China’s growth rate in half this year, from 8.2% to 4%.
Miner Vedanta Resources dropped 42p to £13.17 and Antofagasta shed 36p to £13.63.
Commodity trader Glencore and mining giant Xstrata retreated after the gains made last week on talk the companies may merge. Glencore fell 21.8p to 460.8p and Xstrata dropped 21.5p to 1261.5p.
Financial stocks were dragging the wider market down as well, with Admiral slipping 39.5p to 998.5p and Old Mutual down 3.1p at 154.7p.
But some of Britain’s banking shares held up, with Lloyds Banking Group adding 0.9p at 35.3p and Royal Bank of Scotland edging 0.1p ahead to 28.8p.
Randgold Resources lifted 2%, or £1.65 to £75.65 after it reported a strong set of fourth-quarter results.
Outside the top flight, SuperGroup, owner of the Superdry fashion label and retail network, shot to the top of the FTSE 250 Index after broker Oriel Securities upgraded the stock from hold to buy. Shares were 6%, or 41p higher at £7.03.
RM – a major supplier of whiteboards and technology for school classrooms – swung to losses in the 14 months to November 31, triggering a 7% slide in its shares to 75p.
Elaine McLachlan, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted Scottish firms Cairn Energy and Devro rising 7.45% to 344.9p and 1.78% to £2.80 respectively.
Fallers included regional newspaper publisher Johnston Press off 6.92% at 6.05p.
Aberdeen-based oil and gas engineering company Plexus Holdings fell 4.5% to £1.06 and north-east oil and gas firm oil and gas firm Xcite Energy dropped 3.23% to 89.88p.