The trading week started with UK shares holding steady for much of the morning but momentum did not hold and by close of business the market had settled in the red.
The FTSE 100 index declined 14 points or 0.2% to close at 6,108. The FTSE 250 index fell 39 points or 0.3% to at 12,759.
Trading impetus was stemmed by apprehension ahead of a Federal Reserve presentation. After the Wall Street closing bell, many investors will focus on Fed chairman Ben Bernanke's presentation at the University of Michigan where he is expected to discuss monetary policy matters. Treasury prices moved higher ahead of the speech.
"Bernanke ... is scheduled to talk about monetary policy, recovery from the financial crisis and the US economy's long term challenges which could impact the US dollar and thus risk assets such as equities and commodities, especially with equities running at current highs," said Mike van Dulken, head of research at Accendo Markets.
Closer to home, the latest manufacturing report cast a cloud over Europe. "Markets started the day well but disappointing mid-morning eurozone industrial production figures derailed the momentum, with markets retracing earlier gains," said Alastair McCaig, a market analyst at IG.
The last few weeks have seen investor sentiment swing to the positive and equity markets rally to multi-year highs. But some investors are now voicing concerns that the markets have pushed too high, too fast.
"Both the FTSE 100 and Dow Jones are close to potential reversal levels," said Sandy Jadeja, chief technical analyst at City Index. "Given the recent bullish swings the indices appear to be setting the stage for a minor correction."
On the FTSE 100, amid light trading volumes the greatest gainer for the day was Eurasian Natural Resources (ENRC), which rose 3.5%; while fellow Kazakh-miner Kazakhmys was the greatest casualty, down 2.8%.
Elsewhere, financials Schroders (SDR), Resolution (RSL) and 
Lloyds Banking Group (LLOY) moved higher, up 2.7%, 2.2% and 1.6%, respectively.
