The announcement by rating agency Standard & Poor’s that 15 eurozone countries have been placed on CreditWatch with a negative outlook sees the FTSE 100 dip in early trading.
The blue chip index was down 0.4% to 5,545 (at around 0811 GMT) on the news, with banks among the biggest fallers.
However, Essar Energy was the heaviest faller in early trading, dropping by 3.4% to 240p (at 0808 GMT).
It was followed by Royal Bank of Scotland Group, dropping by 3% to 22.08p. Engineer Meggit slipped 2.6% to 373.7p, while both copper miner Kazakhmys and Barclays fell 2.4% to 945p and 187.1p, respectively.
The biggest climbers were supermarkets Sainsbury’s and Tesco, both up 0.3% to 299.4p and 407.8p, respectively (at 0807 GMT). Morrisons similarly rose in early trading, up 0.2% to 318.4p.
Imperial Tobacco joined Sainsbury’s and Tesco at the top, also up 0.3% to 2,311p.
Vodafone increased by 0.2% to 173.4p.
To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.