London stocks can't escape the global credit crisis which decimated many foreign markets overnight, with the FTSE 100 down 96.5 points, or 1.54%, to 6174.7 - in early trading.
It's the financials leading the slump, with the hedge fund manager Man Group down 28.25 points, or 5.36%, to 498.75.
Prudential is having a hard time; the insurer is down 29.5 points, or 4.24%, to 665.5.
Investment firm Invesco is also sliding, currently 26 points lower, or 4.18%, to 595.5.
GlaxoSmithKline is bucking the trend, leading the way with a 17 point rise, or 1.31 %, to 1318.
In New York, Wall Street suffered its second-worse loss of the year on the back of the US subprime mortgage sector, sending the Dow Jones down 387.18 points or 2.83%, to 13270.68.
News it may not collect the expected $10.3bn for its HD Supply business led Home Depot to the lead the losses, down 2.01 points, or 5.32%, to 35.79.
J.P. Morgan Chase didn’t fare too much better, the subprime worries led it to a fall of 2.34 points, or 5.03%, to 44.17.
Hewlett-Packard also fell, the computing conglomerate dipped 2.38 points, or 4.82%, to 47.02.
The only one to finish in the black was General Motors; its recent strong form led it to record a 0.03 point jump, or 0.09%, to 34.85.
In Japan, the Nikkei was hit by the credit fears, down 406.51 points, or 2.37%, to 16,764.09.
Shinsei Bank was directly affected by the sector worries, falling 43 points, or 9.93%, to 390.
Nisshinbo Industries, the customized machine tool maker, also had a day to forget, sliding 127 points, or 9.2%, to 1,254.
Nippon Suisan, the Japan second-largest marine products company, was the strongest performer, up 38 points, 5.95% to 677.
Fast Retailing dropped its bid for rival firm Barneys, sending its price rocketing, up 300 points, or 4.17%, to 7,490.
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