Stockmarkets around the world plummeted on Tuesday following staggering overnight losses on Wall St.
Asia was particularly hard hit after a sell-off in the US saw its benchmark index, the Dow Jones, shed more than 250 points, or 3.4%, to close at 7,114, its lowest finish for 12 years.
In Japan, the Nikkei index closed down almost 1.5% at 7268.56, while in Hong Kong the Hang Seng was down 3% as investors continued to show little faith in Barack Obama's economic action plan.
The FTSE 100 followed suit, plunging 0.5% by 9am, but losses were stemmed by strong openings for Lloyds Banking Group and the Royal Bank of Scotland (RBS).
Reports Alistair Darling will scrap Lloyds' forecasted £480m annual interest bill if it promises to make billions of pounds in extra mortgages and loans available to customers helped the group to a near 3% gain.
Similar promises made to RBS in return for lending commitments saw it advance 2.3% while service firm Serco Group also made early strides.
The gains helped steady the FTSE 100, but the index still fell more than 15 points, or 0.44%, to 3,833.
Declines were led by software manufacturer Invensys, which was approaching a 5% slump, property investment company Liberty International (2.9%) and Rio Tinto (2.8%).IFAonline
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