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According to Reuters, the index was 0.5 per cent lower at 09:15 GMT, taking it to 5,221.73 points.
Energy stocks were lower as the price of crude oil slid, with BG Group, Cairn Energy, Tullow Oil, BP and Royal Dutch Shell retreating by as much as 1.3 per cent.
There were some gains, notably by mining firms and travel group Thomas Cook - which rose 2.2 per cent after posting better-than-expected full-year results - but many banks fell due to worries about their exposure to Dubai's debts.
Lloyds Banking Group, Royal Bank of Scotland, Barclays and Standard Chartered dipped by as much as 3.6 per cent, with HSBC being the only bank to post an increase at the start of trading.
Market strategist Joshua Raymond observed that many investors have been looking to "cash in their profits" following the news that Dubai is asking to withhold debt payments.
Posted by Clive Arneil
