Leading shares have come off their best levels as optimism about a resolution to the Greek crisis wanes.
Banks are among the major fallers, following news that Moody's had changed its outlook to negative on 13 Italian financial businesses, in the wake of it warning last week it had put the country's sovereign debt on review for a possible downgrade. The agency also said it could downgrade the ratings of another 16 Italian banks, news which has sent their shares sharply lower. At the same time a rights issue for UBI Banca closes today.
Meanwhile the UK's new Financial Policy Committee said the Eurozone's debt crisis was the biggest current risk to financial stability, and Britain's banks could be hit by any disruption to the funding markets.
All this has sent Lloyds Banking Group 1.1p lower to 44.17p, while Barclays is down 3.35p at 240p and Royal Bank of Scotland has lost 0.34p to 36.4p.
And the FTSE 100, up more than 80 points initially, is now 49.34 points higher at 5723.72.
