The FTSE 100 slipped back from this morning’s gains to be flat at lunch on Greek default fears and slightly weaker than expected UK manufacturing data.
Hopes that UK growth would rebound in the second quarter were shot down after Britain's manufacturing sector grew more slowly than expected in May.
Meanwhile, Greece is set to pay 1.6bn euros to the International Monetary Fund this month, with Prime Minister Alexis Tsipras negotiations have stalled because of the demands made by its creditors.
The combination meant the FTSE 100, which had jumped almost 50 points in early deals, collapsed like the England cricket team to sit 12 points down at 6,972.
On the index, equipment rental company Ashtead (LON:AHT) was the biggest riser, gaining back some of the losses it made last week.
It fell 6% after US rival United Rentals said May had been a soft month. Shares climbed 1.8% to 1,141p making it the index’ biggest riser.
Banking giant Lloyds (LON:LLOY) was also higher, 1% to 88p, after the treasury said it has extended its plan to sell-off its stake in the bank.
Conversely, the mining sector was hit hard as the Chinese manufacturing data nudged higher to 50.2 from 50.1.
The manufacturing index, based on a 100-point scale, has been hovering around the 50-mark since December. Numbers below 50 indicate contraction.
Fresnillo (LON:FRES) was at the bottom of the index, losing 2.4% to 741p while Anglo American (LON:AAL) fell 1.75% to 1,008p and Glencore (LON:GLEN) eased 1.5% to 283p.
It could be a tough week for supermarket Morrisons (LON:MRW) as it gears up for its annual meeting this week. It faces the embarrassment of being demoted to the FTSE 250.
Away from the FTSE 100, online gaming company Playtech (LON:PTEC) has made a deal to buy troubled CFD provider Plus500 (LON:PLUS).
Playtech shares fell 1.8% to 815p while Plus500’s rose 1% to 374p.
In small caps, Sunrise Resources (LON:SRES) said it has found bonanza grades of silver in underground samples at its Bay State project in Nevada. Shares advanced 44% to 0.3p making it the day’s big mover.
Meanwhile, Real Good Food (LON:RGD) has issued a bullish trading update following the sale of its wholesale sugar arm Napier Brown.
Sales in the year to March were £104mln and underlying profits £5.3mln. Shares rocketed 8% to 47p on the update.
Conversely, San Leon Energy (LON:SLE) has unveiled plans for a major new equity funding, raising £29mln from existing and new shareholders. The company was one of the day’s biggest fallers, with shares easing 18% to 0.9p.