Libya fallout weighs on FTSE

The FTSE has opened trading in negative territory as fears over the fallout in Libya continue to unsettle investors.

London's leading index was down 0.09%, or 5 points, to 5,995 bringing to an end Friday's rally which saw shares surge past 6,000 following a pledge by Saudi Arabia to increase the supply of oil.

Essar Energy tops the leaderboard, up over 5%, while HSBC - expected to report profits of around £14bn for 2010 - is also an early high-flyer, up nearly 2%.

Eurasian Natural Resources, GKN and Financial Times owner Pearson - which said profits rose 21% last year - complete the winners' table.

Associated British Foods, down nearly 1.5%, tops the losers' table, after saying its interim results will be in line with market expectations.

Supermarkets are also off the pace with Morrison and Sainsbury's - which has announced plans to roll-out its sandwich shop - both down around 1%.

Despite the FTSE languishing in the red, Asian markets had a bright start to the week. Japan's Nikkei recouped earlier losses to finish 0.9% higher and Sydney edged up 0.12% with the MSCI Asia Pacific also rising.

London's losses, however, are mirrored throughout Europe, with France's Cac 40 down 0.35% and Germany's Dax edging down 0.37%.

The Dow closed on Friday 0.5% in the black on the back of improved consumer confidence and steadier oil prices.