Blue-chip shares lost their fizz today as the much-heralded charge above the 7,000-mark fell flat on latest fears over the eurozone debt crisis.

The FTSE 100 Index dipped below the landmark level during the latest session and though it later staged a partial recovery was still 7.3 points behind at 7015.2.

Investors were jittery after a letter reportedly written by Greece's Prime Minister Alexis Tsipras to German Chancellor Angela Merkel raised concerns about its ability to meet debt obligations due in coming weeks.

Mr Tsipras said it would be "impossible" for Athens to meet them if the EU failed to distribute any short-term financial assistance to the country, according to the Financial Times. The report came ahead of talks between the pair.

Germany's Dax and France's Cac 40 were both down sharply.

Meanwhile the pound took a hit after CBI manufacturing figures showed a sharp decline in export orders in March.

Sterling was a cent lower against the euro at just under 1.37 while it also slipped versus the US dollar, at a little below 1.49.

The FTSE 100's tepid performance at the start of the week came after its latest record breaking session on Friday, when it set new closing and intraday highs above the 7,000 mark.

Investors have been buoyed by the prospect of US and UK interest rates remaining lower for longer than previously expected.

In corporate news today, transport operator FirstGroup added nearly 4% after it said it had signed an agreement with the Department for Transport to operate the First Great Western rail franchise until April 1 2019.

It comes days after the FTSE 250 group said it had agreed on a separate deal for a joint venture to run Transpennine services for a further year until 2016. Shares rose 3.4p to 98.5p.

Elsewhere Halfords shares were down after it poached McDonalds UK boss Jilll McDonald to become its new chief executive.

She will take over in May following the departure of Matt Davies, who has been lured to Tesco to become boss of its UK operations.

Shares have lifted two-thirds since Mr Davies, who has overseen a turnaround in its fortunes, joined in 2012. They slipped 5.7p to 447.8p today.

Meanwhile, South West Water owner Pennon cheered investors as it announced a continuation of its dividend policy of year-on-year growth of 4% above Retail Prices Index (RPI) inflation to 2019/20.

It said South West "continues its track record of efficiency and outperformance with robust operational delivery". Shares rose 2%, or 18.8p, to 849.2p.

In the top-flight, overseas focused banking giant Standard Chartered was the biggest riser following a series of analyst upgrades which have seen it return to favour after the appointment of new chief executive Bill Winters.

Shares rose 7%, or 72.2p, to 1143.8p. ends