The FTSE 100 has ended the day down 25.4 points, or 0.4%, to 6,267.2, as financials and insurers dragged the index lower.
Amvescap was the biggest loser with a fall of 5.04% to 565p, closely followed by Legal & General which declined 3.19% to 155p, while Old Mutual declined 3.18% to end at 161.6p.
Scottish & Newcastle also slipped 2.84% to 531p, while British Land dropped 2.79% to £15, although losses were limited by retailer Next which posted the biggest gains with a rise of 2.22% to £23.53.
Power companies also performed well with Drax up 1.76% to 779p, while national Grid added 1.09% to 788.5p, BG Group advanced 1.04% to 731p, and oil company BP climbed 1.56% to 552p.
In the US the Dow Jones Industrial Average is down 110.79 points, or 0.89%, to 12,286.5 in early trading, as oil prices surged and Federal Reserve chairman Ben Bernanke raised concerns about the economy.
Alcoa is the biggest loser so far with a drop of 1.82% to $33.38, closely followed by Wal-Mart which has declined 1.81% to $46.63, while Honeywell International has slipped 1.63% to $45.97.
United Technologies is down 1.62% to $65.04, while General Motors has dropped 1.65% to $31.65, as just two stocks are making early gains, with Altria Group up 0.95% to $85.89, while Exxon Mobil has advanced 0.13% to $75.81.
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