The FTSE 100 fell on Monday, led by mining and oil stocks as commodity and oil prices dropped.

Anglo American, BHP Billiton and Vedanta both dropped just over 3 percent, Antofagasta slipped 1.2 percent and Kazakhmys dropped 2.6 percent.

Among oil stocks, BP fell 0.5 percent, Royal Dutch Shell was down 1.3 percent and Cairn Energy declined 1.3 percent as the oil price slipped below $66, adding to last week's slide on an improved U.S. supply picture and signs of easing tension over Iran's nuclear programme.

By 8:47 a.m., the FTSE 100 was down 23.2 points, or 0.39 percent, at 5856.1. Wall Street is seen weaker on the fifth anniversary of the attacks on the World Trade Center. If anything, trading volumes will be reduced, a trader said.

Traders said economic data expected today was not expected to boost inflationary fears. August PPI data is due at 9:30 a.m.

The PPI prices today should be slightly higher but the market has to some extent factored this in and, with weak oil prices, that will not lift inflation pressures majorly, a trader said.

PRUDENTIAL

Prudential was among the main gainers, up 1.6 percent after the Sunday Times reported that Swiss Re made an offer to buy its closed life funds in a deal that could be worth about 5 billion pounds. Other main gainers were retailers, with Sainsbury up 1.7 percent.

Vodafone was up 1.1 percent after it confirmed its plan to enter Britain's cut throat fixed line broadband Internet market via a deal with the wholesale arm of BT Group, which was steady. Telecoms stocks are in the spotlight across Europe today after Telecom Italia said its board will discuss the restructuring of its mobile and fixed line phone operations today, a move that may usher the sale of all or part of mobile arm TIM.

Steel producer Corus Group tacked on 0.3 percent on Credit Suisse upped the stock to outperform from neutral.

BAE Systems was up 0.3 percent after the defence company won a new contract worth 2.5 billion pounds to upgrade Saudi Arabia's ageing fleet of Tornado planes.

Barclays edged up 0.7 percent after it said on Sunday it had been awarded a licence to operate in Qatar as part of its plan to expand its operations in the Middle East.

Sportingbet was a standout loser, down 38.9 percent after resuming trading following suspension on Thursday when the company announced its chairman, Peter Dicks, had been arrested in the U.S. amid a crackdown on Internet gaming. The firm confirmed on Monday that Dicks had been granted bail by a New York court and said he was expected to attend a further hearing on Thursday. Partygaming rose 0.7 percent.

Ftse Fall