Outsourcing specialist Serco Group was the biggest faller in early trading as the FTSE 100 opened after the bank holiday weekend.

The firm saw share price drop by 3.2 percent to 578p after reports that Bank of America Merrill Lynch Global Research had downgraded the company to 'neutral' from 'buy'.

Hotelier InterContinental Hotels Group dropped 3 per cent to 982p. Both security company G4S and miner Eurasian Natural Resource saw share price slide by 2.5 per cent to 248.7p and 835p, respectively.

The latter saw share price dip as base metal prices retreated as the market reopened, and followed reports that it had postponed a dollar-bond sale.

Microchip manaufacturer Arm Holdings was the strongest riser in early trading, as share price rose by 2.9 per cent to 347.5p. The share price was said to have risen after the firm announced details of its next-generation Cortex-A series processor core.

Reckitt Benckiser Group was buoyed by news that the US Food & Drug Administration had approved its opioid dependence treatment Suboxone in a fast-dissolving sublingual film. The news saw the pharmaceutical giant's share price rise by 1.9 per cent to 3,249p.

Cable & Wireless Worldwide saw share price increase by 0.9 per cent to 66.75p.