An opening fall on Wall Street has sent the FTSE 100 firmly into negative territory.
The Dow Jones Industrial Average has fallen more than 100 points in early trading, with profit takers moving in after the US market briefly entered bull market territory. At last night's close it had risen 21% from its recent low point on March 9 - hardly surprising, then, that some investors have decided to cash in.
In London the leading index is now down 28.50 points at 3896.70, having dropped as low as 3877.55.
Miners are among the biggest losers, with Eurasian Natural Resources Corporation down 35.5p to 444.5p after yesterday's gains. Kazakhmys is 21.75p lower at 375.25p as Deutsche Bank moved from hold to sell as part of its note on the sector. The bank also moved BHP Billiton, down 56p at £14.03, from buy to hold. BHP is rumoured to be on the look out for a major acquisition, after raising cash in the bond markets. Potash Corporation or Woodside Petroleum were mentioned as possible buys, as was - intriguingly - a renewed bid for Rio Tinto.
Rio in fact, has bucked the negative trend in the sector, up 49p to £24.30 despte continuing criticism of its $19.5bn investment deal with Chincalco. Part of Rio's rise was due to news that Chinalco had successfully arranged a $21bn loan to help finance the Rio investment.
Banking shares helped limit the damage on the market. Barclays jumped 23p to 163.1p as it confirmed reports that the Financial Services Authority had stress tested the bank and its capital position met the watchdog's requirements. Lloyds Banking Group is up 4.2p at 73.2p.
