Financial stocks dragged the FTSE ahead of the news that the UK has been officially declared as being in a recession.
For the first time since the early 1990s, the country has entered a recession with GDP falling by 1.5% in the final quarter of 2008, dropping from a 0.6% contraction in the previous three months, alongside almost an unemployment figure of almost 2 million.
Having opened at 4,052.31, the FTSE 100 was down almost 1% in early trading.
Barclays lost over 12% first thing, taking its share price down to 58p, despite CEO John Varley that he would commit to paying for the government's toxic asset guarantee plan in cash rather than equity, according to reports.
Aviva, Legal & General, Prudential and Old Mutual were among the other fallers, alongside mining stocks, with Rio Tinto and BHP Billiton, also falling this morning, by almost 3% each, to 1,493p and 1,129p respectively.Investment Week
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created