The UK benchmark index opened today at 3,837.01 and by mid-morning was edging closer to the low of 3870.6 hit on November 21.
Last night, the Dow Jones index fell to its lowest point since May 1997 with news from the US government that it was considering taking a major stake in Citigroup.
Despite jitters on the global market banking stocks in the UK remained resilient in mid-morning trades with Royal Bank of Scotland up 1.42 per cent to 21.50p.
This followed reports over the weekend that it will be able to unload unwanted assets into a newly formed bad bank as part of the Government’s latest banking rescue.
By 4.15pm, the FTSE was down 0.70 per cent to 3,823.72 heightening fears that the FTSE could close below 2008’s November lows, the biggest trough since 2003.