The FTSE 100 ended slightly weaker on Monday as investors remained on hold ahead of the Bank of England's rate-setting meeting later in the week.

The index closed 5.2 points, or 0.1% down at 5,576.7 points.

The index gave up the 5,600 level in late afternoon trade, having spent the day in a range of just 51 points.

Declining shares were in a slight majority and volume was thin with £576m by the end of trading at 1430 GMT.

Dealers said the market had drifted in a state of torpor as early impetus from overnight rallies in New York and Hong Kong faded.

Modest gains on Wall Street failed to inspire, with the Dow up some 10 points by the end of the London session.

Investors, deterred by recent volatility and lingering concerns about corporate earnings, were expected to remain on the sidelines until the Bank of England announces its rate decision on Thursday.

"No-one is going to do anything before Thursday and even after that we may have a last climb ahead of Christmas, but that will be it," said one trader.

A Reuters poll of economists showed 23 out of 26 expected a rate cut of at least 25 basis points.

It would be the third rate reduction in as many months.

Dealers also said the advent of the euro would also suppress activity in the coming weeks as banks divert resources to prepare for the start of the new currency.

"I think this could be the last active week before EMU," said one.