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The FTSE 100 index slipped by 0.4 per cent to close at 5,525.54 points by the time trading closed, despite rising 0.5 per cent earlier in the day.
Angus Campbell, head of sales at Capital Spreads in London, told Bloomberg the last session had been "volatile" and that there were signs investors were panicking following the news that the summit decision had been postponed.
"Risk aversion crept in ahead of tomorrow's crucial European Union summit with some investors positioning themselves in case of the worst case scenario," he stated.
Regulators have claimed that up to €110 billion (£95 billion) will be provided to banks in Europe to enable them to cope with bond losses.
Posted by Clive Arneil
