The FTSE closed down 99 at 5,866, dragged down by the banks which reacted badly to news house prices fell more than expected in February.
Royal Bank of Scotland, HBOS and Barclays were among the losers but Schroders performed well after Morgan Stanley raised its rating.
The US had a disappointing end to the week as the Dow Jones opened down 95 at 12,599. The slump was a result of weaker GDP figures than expected for Q4 2007 and gloomy forecasts for US economic growth.
View from the front row
Project Libra unveiled
Including SJP and investment trusts
Spent two years at Sanlam
Will also assess FCA's actions