The FTSE 100 Index failed to build on Friday's rebound today as uncertainty over global economic conditions continued to dominate trading.
There were initial hopes for a further rise in the top flight but these quickly faded to leave the FTSE 100 Index 36.6 points lower at 6273.9.
The latest decline follows the biggest one-day rise in 15 months on Friday as global markets bounced back at the end of a volatile week in which fears over the world economy weighed heavily on shares.
Tesco was the biggest riser in the top flight on speculation that this week's half-year results will not require a restatement of profits beyond the £250 million error reported by the supermarket giant last month.
The Sunday Times said the grocer's independent review was expected to highlight "inappropriate behaviour" by some staff but that it was largely confined to the first half of this financial year. Shares were 3.5p higher at 178.05p, a rise of 2%.
Outside the top flight, shares in Spirit Pub Company jumped 7% after it signalled it was prepared to recommend a cash and shares offer worth £725 million from rival Greene King.
Spirit is holding talks with the Hungry Horse owner in a bid to finalise the deal before an extended Takeover Panel deadline of October 30.
Shares rose 6.25p to 97.25p, while Greene King was off 2p at 766p.
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