Britain's leading shares fell on Tuesday, as BP led energy shares lower to outweigh gains in miners, while banks were mixed as policymakers attempted to sooth fears over Europe's debt crisis.
By 0802 GMT, the FTSE 100 was down 3.13 points, or 0.1 percent at 5,065.93, having shed 1.1 percent on Monday.
Euro zone ministers agreed on how to deploy a massive plan to help debt-stricken members, and comments from U.S. Federal Reserve Chairman Ben Bernanke attempted to soothe investors' concerns over growth.
Banks, which have been hit hard since fears over euro zone debt erupted in mid-April, were mixed as investors remained uncertain over the long-term outlook.
UK-focused banks Lloyds Banking Group, Barclays and Royal Bank of Scotland fell 0.1 to 1.2 percent, while HSBC and Standard Chartered added 0.2 and 0.6 percent respectively.
Euro zone ministers inked a deal on the Special Purpose Vehicle (SPV) to raise up to 440 billion euros to lend to the region's countries that become entangled in debt payments problems.
Bernanke also sought to allay fears over Europe's debt problems, saying European leaders are committed to ensuring the survival of the euro and have enough money to meet obligations of heavily indebted member countries.
He also said the U.S. economy appeared to have enough momentum to avoid a "double-dip" recession, citing strengthening consumer and business spending.
"The fact remains our big problem is contagion from European debt and debt all over the world, and that continues to outweigh sentiment towards healthy corporate earnings," David Buik, partner at BGC Partners said.
Energy shares fell as investors remained downbeat on BP as the oil major continues its efforts to stem the major oil spill in the Gulf of Mexico.
BP was down 2.1 percent, while peers Royal Dutch Shell and BG Group lost 0.1 and 0.1 percent respectively.
Tesco fell 1.5 percent as investors reacted negatively to Terry Leahy, the longstanding boss of Tesco, announcing his surprise resignation from the world's No.3 retailer. Tesco said he will be succeeded by lifelong company man and head of international business Philip Clarke.
MINERS CLAW GAINS
Miners led on the upside on London's blue-chip index.
The sector, which has been battered by global growth fears, rallied but is 23 percent off highs reached in early April, just before euro zone debt worries and monetary tightening concerns in China gripped investors.
Fresnillo, Xstrata and Eurasian Natural Resources rose 1.3 to 2.3 percent.
Power generator rental group Aggreko rose 4.7 percent after it said full-year performance should be significantly better than expected as it benefited from contract wins including for the soccer World Cup.
The news helped buoy the service sector, with Capita, Serco and Experian rising 0.3-0.6 percent.
G4S climbed 2.1 percent, extending the previous session's gains as the Daily Mail's Market Report cited revived rumours that a private equity consortium led by Kohlberg Kravis Roberts is lining up a 5.3 billion cash offer worth 375 pence a share for the security provider.
