Banks have started to give the FTSE 100 a battering. The leading index is now down 72.9 points at 5806.4, mainly due to the financial stocks.
Alliance & Leicester has fallen further, down 23.5p to 520p after Citigroup cut its price target to 400p. Bradford & Bingley is 9.75p lower at 176.75p. A&L is due to report next week, as is Barclays - down 7.75p at 435.25p - and Lloyds TSB, 11.5p at 399p.
The sentiment in the sector has not been helped by Citigroup suspending redemptions at a hedge fund, French bank Natixis unveiling a €1.2bn (£900m) writedown and Bank of Ireland - down 2% at €9.29 - warning that the current turmoil would hit its earnings.
The other weak sector is transport after this morning's profit warning from Go-Ahead, down 16% at £18.74.
