FTSE down as oils, banks lead falls

By David Brett

LONDON (Reuters) - The top share index fell 1.1 percent early on Monday on concerns about the global economic outlook, with heavyweight oils, miners and banks leading the market lower.

By 9:21 a.m., the FTSE 100 .FTSE index was down 45.01 points at 4,191.27, after gaining 0.1 percent on Friday.

The index fell through the 4,200 level for the first time since late April. It has gained over 20 percent since touching a six-year low in March, but is still down 5.6 percent on the year.

"This is a trend we're likely to see throughout July," said Howard Wheeldon, strategist at BGC Partners.

"There is no new news out there on which anybody can set up a new stall to believe that recovery is very firmly the order of the day."

The FTSE was mainly a sea of red with oil majors weighing heaviest on the index as the price of crude hovered just above $65 a barrel, with traders selling on the back of mounting fears over the speed of economic recovery.

BG Group (BG.L), BP (BP.L), Cairn Energy (CNE.L), Royal Dutch Shell (RDSa.L) and Tullow Oil (TLW.L) fell between 1.8 and 2.5 percent.

The fall on London's blue-chip market reflected weak showings in Asia on Monday and the lack of a lead from Wall Street, closed on Friday for the long Independence Day holiday weekend.