//
Mining shares dropped on the news due to worries that demand for metals may decrease as a result, while banks were also hit, Reuters reports.
At 08:50 GMT the index was 0.3 per cent lower on 5,502.13 points, with drops of as much as 2.1 per cent being recorded by BHP Billiton, Rio Tinto, Anglo American, Lonmin and Kazakhmys.
Royal Bank of Scotland, Lloyds Banking Group and Standard Chartered were all down in the financial sector, but pharmaceutical companies maintained the gains that were seen in yesterday's afternoon session.
Market analyst at City Index Nick Serff said that the index had taken the lead from the "weak overnight session" seen on the Asian markets.
He noted that China's central bank is currently looking to "cool off an overheating economy".
Posted by Greg Secker
