The FTSE 100 fell one percent early on Monday with banks suffering the sharpest falls as shock news over the weekend that Cyprus planned to impose a tax on bank deposits as part of a bailout package heightened fears of contagion in the euro zone.

By 08:29 a.m. British time, the FTSE 100 was down 62.31 points, or 1 percent, at 6,427.34.