The FTSE 100 is already down 84.6 points, or 1.35%, to 6,201.5 in early trading this morning as it continues its fall from yesterday, and on the back of the US and Asian markets slump overnight.
Mining and financial stocks have been the worst performers so far, with HBOS down 4.15% to £10.86, as there are fears of possible fall-out from the US sub-prime mortgage market on its profits, while Xstrata has slipped 3.83% to £23.84.
Insurer Prudential is also down 3.22% to 662p, closely followed by cruise operator Carnival which has fallen 3.13% to £23.84, while miner Anglo American has declined 3.07% to £24.30.
That said, there are some stocks which are making gains, as oil companies are leading the rally with Royal Dutch Shell up 0.29% to £17, while steelmaker Corus has added 0.17% to 603p, Home Retail has climbed 0.12% to 420.5p, and Gallaher Group is up 0.04% to £11.29.
In Japan, the Nikkei 225 Stock Average tumbled 515.80, or 2.9%, to 17,604.12 at the 3pm close, after US shares fell over concerns the economy is slowing and a sell-off in the Chinese market.
Sony, the world's largest maker of computer game consoles, fell 350, or 5.4%, to 6,170, while Nomura, the nation's largest brokerage, plunged 145 yen, or 5.3%, to 2,575, and Nippon Steel, the world's second-biggest maker of the alloy, dropped 31 yen, or 3.7%, to 805.
Nikko Cordial, Japan's third-largest brokerage, tumbled its daily limit of 200 yen, or 15%, to 1,147 after reports the Tokyo Stock Exchange is preparing to delist the shares after the company admitted inflating its profits.
Meanwhile, property developers dropped with Sumitomo, the nation's No. 3 developer, lost 210 yen, or 4.3%, to 4,720, while Mitsubishi Estate, the second biggest, declined 100 yen, or 2.6%, to 3,690.
In the US, the Dow Jones Industrial Average saw its biggest one day loss since 2001 with a drop of 416.02 points, or 3.29%, to 12,216.24, as markets fell worldwide. Disney was the biggest loser with a drop of 5.72% to $33.10, closely followed by General Motors which slipped 5.33% to $32.16, while Procter & Gamble dropped 4.95% to $61.25.
Exxon Mobil also fell 4.73% to $71.83, while Verizon Communications declined 4.58% to $36.63, and the session closed without any stocks making gains.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected].IFAonline
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