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LONDON (Alliance News) - It was a soft start to the week for stocks in London, with International Consolidated Airlines weighing on the FTSE 100 and Lancashire Holdings tumbling in the FTSE 250.However, clothing retailer French Connection saw a much stronger start as it confirmed it is considering selling the business.The FTSE 100 was down 0.2%, or 12.80 points, at 7,305.74. The FTSE 250 was 0.1% lower, or 19.91 points, at 19,898.12. The AIM All-Share was down 0.1% at 1,067.61.The Cboe UK 100 was 0.2% lower at 12,400.17 and the Cboe UK 250 declined 0.2% to 18,048.99, while the Cboe UK Small Companies was flat at 12,014.61.The downcast open comes after a "downbeat start to the week in Asia", said Michael van Dulken, head of research at Accendo Markets."Most markets are lower but China is suffering most (steepest one-day losses of 2018) as it returns from the Golden week holiday, reacting to trade concerns (US not allowing Mexico or Canada strike trade deals with China), higher bond yields, and allegations of spy chips implanted by semiconductor manufacturers," he said.In Asia on Monday, the Tokyo market is closed for the Health & Sports Day holiday. In China, the Shanghai Composite closed down 3.7% as the Shanghai market re-opens from a week-long holiday, while the Hang Seng index in Hong Kong is down 1.3%.Over in mainland Europe on Monday, the CAC 40 in Paris and DAX 30 in Frankfurt were down 0.4% and 0.6%, respectively.In early trade in London, Schroders advanced 0.8% after confirming it is in discussions with Lloyds Banking Group "with a view to working closely together in parts of the wealth sector".Sky News earlier had reported that Lloyds Banking is to inject its GBP13 billion wealth management arm into a new joint venture with Schroders. The deal will see Lloyds owning 50.1% of the new JV, with Schroders owning the rest, Sky said.It will be part of a three-pronged tie-up between the companies, with Schroders taking on a GBP109 billion investment management contract from Lloyds-owned Scottish Widows, according to Sky. The contract is currently held by Standard Life Aberdeen but has been terminated by Lloyds over competition worries.Schroders on Monday said: "Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into. A further announcement will be made when appropriate."Lloyds Banking was down 0.3%, while Standard Life was down 0.8%.British Airways parent IAG was down 1.9%, its wings clipped after Citigroup downgraded the stock to Neutral from Buy.Also lower on broker rating action was Vodafone, down 1.0% after Jefferies cut its rating on the telecommunications firm to Hold from Buy.At the bottom of the FTSE 250 was insurer Lancashire Holdings, down 3.4% - though having traded as much as 10% lower just after the open - after warning of a negative third-quarter outturn.The company said that it expects a significant hit due to its exposure to loss events in its marine portfolio as well as natural disasters such as hurricane Florence and typhoons Jebi, Mangkhut and Trami.A USD30 million net loss is expected from the loss events in the marine portfolio, while the net loss elsewhere from natural catastrophes is expected to be in the range of USD25 million to USD45 million.These estimates are after anticipated recoveries from the outwards reinsurance programme, Lancashire said."Given these loss estimates, the company expects that it will produce a negative return on equity for the third quarter of 2018. Absent these events, the company would have been profitable for the third quarter. The company also expects to remain profitable for the first 9 months of 2018," said Lancashire.The update knocked other general insurers as well, with Hiscox down 1.1% and Beazley off 1.9%.Rising in the mid-cap index was Mediclinic International, gaining 1.8% after Investec raised the private hospital operator to Buy from Hold.Elsewhere in London, fashion retailer French Connection jumped 31% after confirming it is mulling a sale of the business.The firm said it is considering "all strategic options" to deliver maximum value for shareholders, though emphasised there can be no certainty that an offer will be made for the company.To come in a quiet economic calendar on Monday is eurozone investor confidence at 0930 BST.Overnight, in Chinese data, the private sector logged moderate growth in September as stronger-than-expected services activity was offset by softer manufacturing growth.The Caixin composite output index rose marginally to 52.1 in September from 52.0 in August, with a score above 50 indicating expansion. At the same time, the services Purchasing Managers' Index picked up to 53.1 from 51.5 a month ago, to signal the strongest increase in activity for three months.In the UK this week, Brexit will remain in focus as the make-or-break October EU summit draws near.Despite key EU leaders sounding more upbeat at the prospects of a deal in recent days, Brussels appears set to reject key aspects of UK Prime Minister Theresa May's Chequers proposals on Wednesday. However, it was reported that the prime minister hopes to break the deadlock over the Irish border issue by keeping the EU's present customs arrangements beyond when the transition period is due to end in December 2020.Time is running out for London and Brussels to strike a deal as EU leaders insist substantive progress must have been made by a leaders' summit on October 17 for the bloc to agree a further Brexit gathering in November.Progress on a deal with Brussels comes as Japanese Prime Minister Shinzo Abe said the UK would be welcomed into the Trans-Pacific Partnership trade pact "with open arms" by Japan. The TPP is an 11-nation trade agreement which includes Japan, Canada, Australia and Mexico.Sterling was quoted at USD1.3072 early Monday, marginally down from USD1.3096 at the London equities close on Friday.