The FTSE 100 has opened 1.3% lower this morning as global indices continue to decline.
Following a 1.7% fall for the S&P 500 last night and a 1.1% drop in Japan today, London's leading index has opened 1.3% behind to 5,096.19.
BP's woes continue as it struggles to fight the oil leak in the Gulf of Mexico. After a 13% drop yesterday, the oil giant has retreated a further 3.35% this morning, to 415.6p. it also suffered a 14% drop in US trading.
Prudential has opened 3.56% lower after the collapse of its AIA deal, falling to 555p.
National Grid and M&S are among the losses after moving ex-dividend, down 3.46% and 3.06% respectively.
Defensive stocks are helping to cushion losses, with pharma giants GlaxoSmithKline and AstraZeneca up 1.08% and 0.48% respectively, while Imperial Tobacco is 0.49% higher.
In the US, stocks linked to the Gulf of Mexico disaster plummeted, with Halliburton down 14.8% and Transocean down 11.9%.
The Dow Jones ended Tuesday 1.1% lower to 10,024.02 points, while the S&P 500 fell 1.7% to 1,070.71 and the tech-heavy Nasdaq dropped 1.54% 2,222.33.
In Asia, the Nikkei 225 closed down 1.12% at 9603.24 points after Japanese Prime Minister Yukio Hatoyama announced he will step down, just two months before elections.
Mitsui & Co, owner of stakes in oil and gas fields in the Gulf of Mexico, dropped 8.3% - while Japan's largest energy explorer Inpex Corp closed 2% lower.
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