Financials have continued yesterday's poor showing in early trading this morning, driving the FTSE100 down 32.90 points (0.56%) to 5844.70.
Alliance & Leicester is the worst of the sector so far but has many friends; the insurer has dipped 4.25% to 349.
Interdealer broker ICAP is not too far behind, 3.47% lower to 570.
Persimmon looks set to fall from the blue-chip index shortly, the home builder is leading the losses so far, down 5.31% to 406.
Eurasian is leading the gains this morning on news fellow Kazakh miner Kazakhmys has taken a further stake in the company. It is up 5.58% to 1399.
The London Stock Exchange Group is also doing well, currently 2.64% ahead to 915.
In New York, Wall Street somewhat bounced back from Friday’s poor session to post modest gains on the back of lower crude oil prices. The Dow Jones IA closed 70.51 points (0.58%) higher to 12280.32.
A Citigroup stock estimate led aluminium producer Alcoa to a strong day, finishing 7.52% up to 42.17.
McDonalds climbed on continued European growth, 4.14% higher to 59.31.
Even though crude prices fell, expectations of future record highs led oil giant Exxon Mobil to climb 2.63% to 89.07.
Once again the financial sector was stung, with Lehman Brothers announcing it expects to record a $2.8bn Q1 loss.
JPMorgan Chase was hardest hit, falling 6.44% to 37.51; while Bank of America was down 2.92% to 29.61 and Citigroup dipped 2.29% to 19.60.
In Tokyo, Japanese stocks fell as investors fear interest rates and inflation could hit corporate profits. The Nikkei 225 index lost 160.21 yen (1.13%) to close Tuesday down 14,021.17.
The Japanese loss was nothing compared to the Chinese markets, with Hong Kong’s Hang Seng plunging 996.76 (4.08%) to 23,405.42.IFAonline
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Latest news and analysis
Drip-feed. Blend. De-risk