The FTSE 100 ended Tuesday almost 31 points down at 6,953 with miners in decline and Greece continuing to weigh on sentiment.
Commodities giant Glencore (LON:GLEN) and Anglo American (LON:AAL) both finished among the top five losers despite manufacturing data from China, which was said to be positive.
Anglo fell 2.24% to 1,003p while Glencore lost 2.15% as metals prices, notably copper, were hit.
David Madden, at IG Index, said: "The FTSE 100 has failed to hold onto the 7000 mark as Greece’s fate hangs in the balance. Traders can’t hold their nerve as the Friday deadline draws nearer.
"This isn’t the first time that Greece has brushed with bankruptcy, and it won’t be the last, but traders are getting out of the market while the exchange is open."
Also in focus were hopes that UK growth would rebound in the second quarter but 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.
Equipment rental company Ashtead (LON:AHT) was the biggest riser, gaining back some of the losses it made last week- up 2.77%.
In small caps, Sunrise Resources (LON:SRES) was a notable riser- adding over 26% to 0.27p as it said it has found bonanza grades of silver in underground samples at its Bay State project in Nevada.
Meanwhile, Premier African Minerals (LON:PREM) also shot up - 22.68%.
Conversely, San Leon Energy (LON:SLE) has unveiled plans for a major new equity funding, raising £29mln from existing and new shareholders.
Shares fell 13.64%. Another faller was Circle Oil (LON:COP), which shed 19.81% to 10.62p after posting final results.
Lower oil prices hit the group’s revenues in 2014 - a year, which was one of transition, it said.
Oil and gas revenues were down 9% to US$84.62mln despite Circle's robust production in both Morocco and Egypt but the firm said it had been "partially insulated" from the low price environment partially down to low costs in Egypt and stable prices in Morocco.
Group operating profit, before write-offs and impairments was down 28% to US$23.31mln from US$32.35 million in 2013.
Looking ahead, the firm, which has a new chief executive Mitch Flegg, will drill three new production wells in Egypt this year that will minimise the decline in production rates, it said.