London's leading share index was down 0.37% at 5954.39 in early trading on Thursday, stemmed by disappointing results from US companies and weakness in Asia.
On Wall Street, shares saw their largest one-day decline since November, following companies' weak profit reports. The S&P dropped 1% to 1,281.92 points, the Nasdaq fell 1.5% to 2725.36, while the Dow Jones closed down 0.11% at 11,825.29.
Although IBM rose 3.3%, Apple was down 0.5% while Goldman Sachs, Bank of America, JPG Morgan, American Express and Visa each dropped over 2%.
Investor concerns spread to the UK this morning. Invensys took a hit, dropping 5.76%, while Associated British Foods fell 3.59%. British Airways declined 2.47%, RSA Insurance Group was down 2.45% and Fresnillo fell 2.10%.
This morning's winners were National Grid, up 1.6%, United Utilities Group, climbing 1.42%, Pearson, up 0.95%, Severn Trent, rising 0.84% and Reckitt Benckiser Group, up 0.75%.
In Asia, Tokyo's Nikkei 225 dropped 120 points, or 1.13%, down to 10437.31, after strong Chinese growth data prompted fears of monetary tightening.
While inflation in China cooled to 4.6% in December following a 28-month high the previous month, figures revealed the country's economy grew by 10.3% last year, surpassing expectations.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected