London shares closed lower at the end of trade on Monday despite encouraging data coming out of China and Europe as attention shifted back to US monetary policy.

The FTSE 100 lost 0.59 percent to 6,557.37 points.

Greg Erlam at Alpari Research said "while most people in the markets would agree that the odds of a government shutdown are extremely slim, they are clearly not willing to put their money where their mouth is.

Back in London, Lloyds Banking Group remained the most traded blue-chip by volume with 164.51 million units switching owners, followed by Barclays which saw 106 million units change hands.

The day's best performer was Croda International, which rose 1.75 percent to 2727. It was followed by Rolls Royce climbing 0.81 percent to 1115.

Lloyds was the biggest loser, falling 3.07 percent to 73.91. Shire was next descending 2.82 percent to 2520.

On the currency markets, sterling climbed to $1.6054 at 5:47pm from $1.6006 at the same time last Friday, and also rose to1.1886 euros from 1.1834 over the same period.