Shares in banks and mining companies fell this morning on concerns that slow economic growth may prolong the global recession, cutting demand for financial services and industrial metals.
Barclays led losses among the FTSE 100, easing 5.85p, or 2.1%, to 261.25p, while Lloyds Banking Group fell 0.89p, or 1.6%, to 53.81p.
BHP Billiton led the mining losses, with a 28.5p drop, or 1.6%, to £16.93. Rio Tinto fell 1.6%, or 47.5p, to £28.85.
"The downside risks to growth have risen appreciably of late due to a significant deterioration of financial conditions stemming from growing concerns about sovereign risk and the fragility of the banking sector in Europe," said Deutsche Bank in a note to investors.
Weak US economic data pushed the Dow Jones and the S&P indices 0.47% lower on Friday night. "Non-farm payrolls were slightly weaker than expected with private sector job creation failing to live up to expectations," said Gary Jenkins, a credit analyst at Evolution Securities.
The FTSE 100 was down 4 points to 4,842 points by 945am.
