US shares have retreated after their buoyant showing yesterday amid fears the eurozone aid package may not bring the economic stability hoped for.
News of a €750bn EU/IMF rescue package to prop up the euro sent the Dow climbing to a 14-month high yesterday and the FTSE also make impressive gains.
But doubts about the effectiveness of the rescue package combined with rising inflation figures from China dampened investor confidence and sent the Dow 68 points into negative territory at the start of trading.
Banking stocks are among the morning's losers, with JP Morgan Chase down 1.60% and Bank of America down 1.33%.
By 15.00 GMT, the index had regained some ground and was down 0.49% to 10732.
Meanwhile, the FTSE continued its slide as nervous investors digested the ramifications of a hung parliament in the UK. As at 15.00 GMT, London's leading share index was down 1.9%, or 102 points, to 5285. Royal Bank of Scotland - fresh from yesterday's announcement it will scrap 2,600 UK jobs - is down 6.28%.
Sterling recovered from an early 1% fall against the dollar to stand at $1.481 - down just 0.20%
Positive figures showing UK industrial output hit an eight-year high in March, rising 2%, failed to stop London shares sliding.
The ongoing political uncertainty in the UK, meanwhile, rubbed off on the on the CDS market, as the cost of insuring the UK's debt widened to 87 basis points from yesterday's close of 82 basis points.
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