UK shares tumbled as trading began today after the IMF's bleak forecast for the UK economy worried investors.
The FTSE100 dropped 44.52 points (1.04%) within minutes to hit 4,250.68 as financial and mining stocks dragged the index down.
Mining giant Xstrata lost 14.04% with shares trading at 535.5p while Kazakhmys dipped 6.1% to 227.25p.
Despite reporting a 3% rise in both global and UK sales, Legal & General's shares fell 6.24% to 63.1p. The insurer saw strong growth in its annuities and SIPP business, but unit linked bonds sales plummeted and individual protection sales were hit by the decline in mortgage lending.
The troubled Lloyds Banking Group lost 6.14% to 94.7p, while private equity fund managers 3i Group fell 5.47% to 237.5p after announcing a 21% fall in its top investments.
BSkyB shares climbed 1.07% as the firm laid out plans to invest in high definition television services.
US shares soared as the House of Representatives passed President Barack Obama's economic stimulus plans, worth almost £600bn, despite intense opposition from the Republican Party.
The US's three major banking groups were buoyed by the news, and Citigroup shares jumped 18.59% while Bank of America and JP Morgan Chase saw shares climb 13.69% and 10.38% respectively.Investment Week
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