London shares fell into negative territory as worries about a possible rise in US interest rates continued to unsettle investors.
The FTSE 100 Index surrendered modest gains made in the first hour to stand 15.2 points adrift at 4524.7 by mid-morning.
Fears of a rate rise in the United States kept the lid on buying interest on Wall Street yesterday, where the Dow Jones Industrial Average managed to rise just two points.
That uncertainty had a knock-on impact in London today and poor corporate sentiment added to the downbeat mood.
Wine and spirits group Allied Domecq was near the top of the Footsie fallers, down 8.25p to 456.5p, despite saying good performances in Spain and the United States had helped it drum up a 4 per cent rise in half yearly trading profits to £337 million.
Abbey National was also on the slide, down 9.5p to 425.5p, after forecasting lower-than-expected first-quarter profits in its core personal finances business.
Brewing group Scottish & Newcastle topped the list of Footsie risers with a 7.5p increase to 411.5p after pleasing investors with cost cutting news.
The group said it was planning to close Newcastle's historic Tyne brewery and move to a new site nearby.
Outside the top flight, struggling retailer WH Smith said its high street shops had delivered an "unacceptable" performance. The group saw its shares rise 2.25p to 357.25p despite confirming City forecasts of a 29 per cent drop in half yearly profits.