Concerns over debt-laden Greece's ability to meet a looming repayment deadline continued to impact blue chips today with little respite offered by cheery UK economic data.
The FTSE 100 fell 25.3 points to 6928.3 with little reassurance offered by Greek prime minister Alexis Tsipras's move to submit a "realistic proposal" to the country's international creditors in an attempt to secure a deal over its debts, with a repayment due to the International Monetary Fund on Friday.
He said it was now up to political leaders "to adapt to realism and emerge from crisis without the division of Europe".
The FTSE's drop added to a fall of just over 30 points in the previous session. Germany's Dax was also lower, though France's Cac 40 was little changed.
On Wall Street, the Dow Jones Industrial Average was likewise in the red, down 28 points by market close in London, with sentiment also impacted by data showing US factory orders fell 0.4 per cent in April - a sign that manufacturers are struggling as the dollar has strengthened.
In currency markets, the pound was up slightly against the US dollar at a little over 1.52 as UK construction data for May showed a rebound in the sector.
However sterling was a cent lower against the single currency at 1.38 after inflation in the eurozone returned to positive territory for the first time since November, allaying fears in recent months over a spiral of falling prices.
In equities, Merlin Entertainments saw its shares drop more than three per cent - down 15.9p to 444.3p - after a collision between two carriages on the Smiler rollercoaster at its Alton Towers theme park left four teenagers with serious leg injuries.
The accident involved a moving carriage with 16 passengers and an empty, stationary carriage which came together on a low section of the track on the £18 million rollercoaster.
Morrisons was among the risers after industry data from Kantar Worldpanel showed it grew sales for the first time in nearly 18 months in a welcome sign of recovery at the struggling supermarket chain.
The Bradford-based retailer saw sales edge 0.1 per cent higher in the 12 weeks to May 24 compared with a year earlier. Shares rose 3.1p to 172.5p.
Morrisons was the only one of the so-called "big four" grocers to post a sales increase, with market leader Tesco - after an improved start to the year - seeing a 1.3 per cent fall in sales. Its shares fell 2.4p to 207.5p.
Sainsbury's, with a 0.3 per cent sales decline, saw shares slip 2.9p to 245.1p.
Building supply group Wolseley was one of the biggest FTSE gainers after its latest trading statement showed like-for-like sales up 7.5 per cent in the third quarter and gross margins ahead. Shares rose two per cent, or 81p, to 4100p.
The biggest FTSE 100 risers were Anglo American up 45.5p to 1048.5p, Antofagasta ahead 23.5p to 766.5p, Rio Tinto 67.5p higher at 2902p and Wolseley 81p stronger at 4100p.
The biggest FTSE 100 fallers were Merlin Entertainments down 15.9p to 444.3p, Imperial Tobacco off 96p to 3210p, British American Tobacco 86.5p lower at 3506p and British Land 20p weaker at 852p.
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