Global markets have continued on a downward trend as fears re-emerged about the state of European and the US economies.
A weaker than expected Spanish bond auction and a signal from the Federal Reserve that QE3 is now on hold led to declines across Western and Eastern stock markets.
Following on from the FTSE 100's closing loss of 2.3%, bringing it to 5704, the S&P 500 also shed 1.02% to close at 1,399.
Asian shares were also largely in negative territory with the Hong Kong Hang Seng index posting a loss of 0.64% to close at 20,657 while the Nikkei 225 declined 0.53% to 9,768.
Risk assets sold off after minutes from the Fed's 13 March meeting surprised markets in their more hawkish tone, appearing to rule out more quantitative easing in the near future.
Yields on Spanish 10-year bonds also rose to 5.7% after a €2.6bn auction met with muted demand from investors.
The lack of demand was felt in European markets, with the EURO STOXX 50 closing down 2.46% to 2,398.46.
Improving portfolio diversification
Hanging on the telephone
German recession concerns