Renewed concerns on the health of US banking institutions have spooked markets across the globe, with the FTSE100 sharply lower in morning trading.
London’s blue-chip index is currently 70.70 points (1.33%) behind to 5229.70.
Royal Bank of Scotland is leading the banking sector’s losses so far, down 5.06% to 170.90. Standard Chartered, a stock which has escaped much of the recent dramas, has hit a 52-week low – sliding 4.79% to 1313.
Rumours it will not bid for Alliance & Leicester has impacted Lloyds TSB, down 3.99% to 271.
The morning’s largest loss belongs to media giant Thompson Reuters, 5.38% behind to 1178.
Energy stocks seem immune to the early hardship, with British Energy and Scottish & Southern Energy up 2.2% to 721.50 and 1.21% to 1418.
In New York, Wall Street gave up triple-digit gains on Monday as pain for regional banks dented US investor confidence. The Dow Jones IA closed 45.35 points (0.41%) lower to 11055.19.
The Treasury’s Fannie Mae and Freddie Mac rescue plans failed to restore confidence in the sector, with Bank of America leading the Dow decliners, 7.01% behind to 20.15.
Fellow giants Citigroup and JPMorgan Chase also struggled, down 5.99% to 15.22 and 4.43% to 31.69 respectively.
Coca Cola climbed 1.37% to 50.96 and McDonalds added 1.34% to 58.09.
In Tokyo, the US troubles filtered across the Pacific on Tuesday smacking Japanese equities. The Nikkei 225 fell 255.60 yen (1.96%) to 12,754.56.
It was a similar story elsewhere in Asia, with Hong Kong’s Hang Seng down 922.82 (4.19%) to 21,091.64.IFAonline
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