LONDON (Reuters) - The FTSE 100 fell on Monday as results of the European banking stress tests did little to assuage investors' concerns over the region's debt troubles, dampening appetite for riskier assets. The benchmark index (UKX.L) was down 44.22 points, or 0.8 percent, at 5,799.44 by 9:26 a.m., having lost 2.5 percent last week, with banks , miners and integrated oil stocks leading London's blue chip market lower. Phil Roberts, chief European technical strategist at Barclays Capital, said he sees further downside for the FTSE over the week but expects the index to keep within its summer range. "Maybe we take out 5,789 and push towards 5,738, possibly 5,670 (over the week). And then you're looking for the range lows (around 5,640) to hold and then the FTSE recover again as we continue the summer choppy range trading." Royal Bank of Scotland (RBS.L), down 3.4, was top faller in a weaker banking sector. Eight European banks failed a test of their ability to withstand a long recession -- which did not build in the impact of a sovereign Greek default -- and will have to raise just 2.5 billion euros (2.1 billion pounds) of capital, significantly less than expected. "Even so the risks are also rising, and the amount of capital to be raised is no game-changer. As a result, we expect the key driver of sector performance to be the health of the global economy and regulatory developments," Deutsche Bank said in a note. "We view the sector as cheap versus our view 1.2 times P/TBV fair value, but the risks to the sector of macro slowdown or policy mistake are huge." Euro zone leaders will meet in Brussels on July 21 to discuss a second bailout package for Greece and the financial stability of the euro area. Euro zone governments are considering a levy on banks as a way to involve private creditors in a bailout of Greece, Germany's Die Welt newspaper reported on Monday, citing unnamed diplomatic sources. BROADER CONCERNS Sovereign debt risks are not just confined to Greece, Portugal and other euro zone members, and the ongoing situation in Europe has only served to highlight the potential for trouble in the United States. President Barack Obama has so far failed to persuade lawmakers to raise the debt ceiling in the World's biggest economy, prompting ratings agencies to threaten the country's triple-A credit rating. "The U.S. is not going to allow itself to be downgraded in terms of credit. However, the fact will remain that the market is wanting to see something more concrete about the U.S.'s own debt crisis," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers. Elsewhere among financials, Hedge fund firm Man Group (EMG.L) fell 1.9 percent after saying it will take on exposure to the estates of defunct U.S. investment bank Lehman Brothers from funds managed by its subsidiary GLG Partners for $355 million (220 million pounds). Among the gainers on Britain's top share index was Imperial Tobacco , up 0.6 percent as Citigroup upgraded its rating for the cigarette manufacturer to "buy" from "hold" on hopes that a price war in Spain is now over. Miner Fresnillo (FRES.L) and Randgold (RRS.L) rose up to 1.1 percent as traders treated the firms as a equity play on precious metals, with money continuing to be poured into gold as an ongoing hedge against euro zone debt concerns. Spot gold touched a record high on Monday, on track for its longest winning run in at least four decades. No domestic macroeconomic data is due for release on Monday. (Additional reporting by Stephen Eisenhammer; Editing by Hans-Juergen Peters)

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