The FTSE 100 has fallen 3.6 per cent today as European debt fears continue to grip the continent.
At close, the blue chip index was down 3.6 per cent at 5102.58. The pain was also felt across other European markets with the French Cac 40 and the German Dax down 4.8 and 5.3 per cent respectively.
The fears come as borrowing costs in both Spain and Italy have begun to rise again, while there is also talk of European banks shifting cash to the US.
Asian markets also fell overnight with the Nikkei closing 1.9 per cent down while the Hang Seng in Hong Kong was 3 per cent down at close. In the US, the Dow Jones has also fallen 2.2 per cent since opening.
Banks again led the falls in the FTSE 100, with Royal Bank of Scotland, Lloyds Banking Group and Barclays the three biggest fallers in the blue chip index.