There is little respite for the market again today, after Asian stock exchanges plunged overnight. With Wall Street forecast to open around 65 points lower, things may well get worse during the course of the day.
The FTSE 100 is now 118.4 points lower at 5750.6. The US fiscal package and the Federal Reserve's surprise cut in American rates last week have done little to assuage fears that the country is heading into recession. Most investors have priced in another 50 basis point cut in US rates on Wednesday, and the markets will be in turmoil if they don't get it. In the UK the betting is still for a 25 basis point cut next week.
Miners are again among the biggest fallers, on fears that a US recession would hit demand. So Anglo American is down 148p to £24.42, Lonmin is 141p lower at £27.59 and Rio Tinto has lost 221p to £44.75.
Even Xstrata, which had edged up earlier on hopes of an imminent bid from Brazil's Vale, is now down 9p to £34.91.
Among the other risers, Carphone Warehouse is 1.25p better at 300.25p as Credit Suisse repeated its outperform rating and 400p price target.
