The FTSE plunged into negative territory in afternoon trading Friday as concerns over US economic growth and mixed results from big corporates drove Wall Street into negative territory at the start of trading.
As at 3pm GMT, London's leading share index is down 0.8% to 5169, with banking stocks dragging the FTSE down and wiping away the day's previous gains.
Barclays (down over 5%), Lloyds and Royal Bank of Scotland are all in the red as investors fret over the results of European bank stress tests due out next week.
Fresnillo and Randgold Resources complete the loser's table.
BP, which previously powered the FTSE's positive showing, just scrapes into the leader's board.
London's index has been hit by a dour start to trading over the Atlantic as investors were spooked by data showing consumer prices declined for the third consecutive month, fuelling deflationary fears. Prices fell 0.1% on the previous month, with energy prices driving the fall.
Shortly after opening, the Dow was down 1.78%, or 183 points, to 10,175. Adding to the economic gloom, Citigroup, Bank of America and GE all posted results that were down on last year, but nevertheless beat expectations.
The plunging Dow had a knock-on effect throughout Europe as major markets all lost previous gains. Germany's Dax is down 1.73% and France's Cac 40 down 2.14%.
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