The FTSE 100 tumbled nearly 2% in morning trading after the US Federal Reserve spooked markets yesterday by warning it may slow its asset purchase programme.
The Federal Bureau of Investigation (FBI) is investigating whether insider trading took place in Heinz shares ahead of the food giant's historic deal with Warren Buffett's Berkshire Hathaway.
The US economy shrunk in the final quarter of 2012, raising fresh questions about the strength of its economic recovery.
The US authorities have released their final set of rules on the FATCA regime designed to prevent tax evasion among US citizens with assets in offshore accounts.
Minutes from the latest Federal Reserve meeting suggesting its quantitative easing programme could end sooner than expected have hit equity markets overnight.
The US Federal Reserve has expanded the scope of its quantitative easing programme and suggested interest rates will not rise until US unemployment falls below 6.5%.
Equity markets have been given a boost by the latest monthly jobs figures from the US which show a further fall in the unemployment rate in November.
HSBC is preparing its first sale of sub-prime loans since the height of the financial crash, as Britain's largest bank begins to off-load more than $40bn (£25bn) of toxic US debt it still holds on its books.