Marks & Spencer (MKS.L) was the only company to report a rise, albeit a modest one, in early trading (at 1006) during a subdued start to trading.

The high street retailer saw its share price rise by 0.7 per cent to 376.4p ahead of an interim management statement due tomorrow.

Renewed concerns over the European sovereign debt crisis have taken their toll on the market, leading to a more bearish outlook.

Microchip manufacturer Arm Holdings (ARM.L) was the biggest faller, dropping 5.1 per cent to 595.5p.

It was followed by Iberia and British Airways umbrella company International Consolidated Airlines Group (IAG.L) down 4.1 per cent to 227.4p.

Barclays (BARC.L) dropped 3.9 per cent to 224.85p, while listed hedge fund Man Group dropped 3.7 per cent to 242.7p. Broadcaster ITV (ITV.L) shed 3.3 per cent, falling to 67.35p.

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