An opening fall on Wall Street has accelerated declines in London shares, with both markets currently down around 1%.
The US market has been spooked by below part results from Bank of America and Morgan Stanley, which has helped push the Dow Jones Industrial Average down 110 points. It has now lost the bulk of yesterday's gains in just the first half hour of trading.
Meanwhile the FTSE 100 has fallen 53.65 points to 5459.49. The other concern for investors which has emerged today is a further sign of China tightening its monetary policy, raising fears that demand in the country may be hit and weaken the global economy further as it tries to recover from recession. The Chinese central bank has reportedly instructed banks to curb their lending for the rest of January after a splurge of credit so far this year.
So UK quoted miners are falling sharply despite news of record production figures from BHP Billiton. BHP is down 61.5p at 2018.5p while Xstrata is now 63p lower at 1154.5p and Antofagasta is off 51.5p at 987.5p. Nine of the top ten fallers in the leading index are miners, the exception being Imperial Tobacco, down 74p at £19.91. David Buik at BGC Partners said:
Investors have taken some money off the table and will reflect on the message being circulated, which is that the recovery will take longer to bring forth fruit than many hoped for.
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