Miners have drilled into yesterdays FTSE 100 gains, effectively wiping them out in the opening minutes this morning.
A fall on Wall St also did not help, with the index currently down 126.7 points, or 1.99%, to 6233.4.
Cadbury Schweppes announced a fall in interim profits and warned it may face more pressure for the rest of the year from rising raw material prices.
The beverage and confectionary giant is down 35.5 points, 5.73%, to 584.5.
But it is the miners really taking a battering, with Antofagasta, BHP Billiton, Xstrata and Rio Tinto all among the top five losses.
Antofagasta has dropped 5.01%, BHP 4.75%, Xstrata 4.66% and Rio 4.58%.
National Grid is one of the very few to be up early; currently ahead 3.5 points, or 0.5%, to 706.
One again fears about the sub-prime sector emerged in New York, dragging the Dow Jones down 146.32 points, 1.1%, to 13211.99.
International Business Machines fell for a fourth straight day, after announcing it will pay $65 million to settle a class-action overtime wages lawsuit, down 3.87 points, or 3.38%, to 110.65.
Diversified manufacturer Honeywell International also dipped, 1.93 points lower, or 3.25%, to 57.51.
UBS upgraded Verizon stock to ‘Buy’ from ‘Neutral’, in expectation of strong growth in the next two years.
The communication giant led the day’s gains, up 1.11 points, or 2.67%, to 42.62.
Caterpillar was boosted on news the company’s Wall Street 2008 earnings prediction was too low, leading to a rise of 1.76 points, or 2.28%, to 78.8.
To comment on this story, contact:
0207 034 2681
Industry Voice: Scottish Widows pension expert Robert Cochran and economist Andrew Scott discuss the future of employment and income, in episode three of Scottish Widows' podcast series.
What made financial headlines over the weekend?
Follows McVey's resignation
Schroders and Aviva Investors