FTSE down 0.5 percent as banks head south
FTSE gains as metals spur minersHeavyweight oil companies also gained ground, as U.S. crude rose to almost $114 a barrel. Royal Dutch Shell and Tullow Oil tacked on 0.7 and 0.5 percent respectively.
BP dipped 0.9 percent however, after TNK-BP bought a 25 percent stake of a Siberian power plant from OGK-1, one of Russia's biggest power companies, reported the Financial Times.
BP was also among six FTSE 100 companies that will no longer qualify for the latest dividend payout, taking 8.06 points off the index.
On the economic front, the Bank of England's quarterly inflation report due at 10:30 a.m. and U.S. retail sales numbers for July from 1:30 p.m. may offer additional market direction as the session progresses.
"Yesterday's CPI data wasn't a shock but what will be is the content of the inflation report from the BoE, which will say the UK economy is not in good shape," BGC Partners' Buik said.
BRITISH ENERGY STRONG
British Energy tacked on 0.6 percent after it said its first quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) nearly halved to 129 million pounds.
The results were a lot better than some analysts expected.
Vodafone was 0.5 percent lower after Ghana's government resubmitted the mobile phone company's $900 million offer for Ghana Telecom to parliament on Tuesday.
Further on the downside, retailers dipped into negative territory as concerns over the health of the economy and a lack of merger and acquisition activity dragged, traders said.
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