The FTSE shed 12 points (0.2%) to settle at 5128, whilst the CAC was flat and the DAX slipped 30 points (-0.5%).
There was some early strength in the eurozone session but this was snuffed out by comments from German Chancellor Merkel who ruled out joint euro-area borrowing.
Euro bonds are ‘not needed and not appropriate’ was her comment, delivered at a press conference with Italian PM Mario Monti and French President Sarkozy.
The comments saw the euro weaken 0.3% against the yen and 0.1% against the Swiss franc. The yen advanced against all but two of its major counterparts.
Oil bounced back from its lowest level in two weeks following a surprise drop in US stockpiles. Crude for January delivery rose as much as $1.01 to settle at US$97.18.
There is no major local data due out for today’s session.