The FTSE lost close to two percent in early trading on the back of signs the US may wind down quantitative easing measures and weak Chinese data.
After all the fuss the International Monetary Fund has made over the past month about the need for the UK to change course on austerity, and about how George Osborne's policies are "playing with fire", most were expecting a harsh verdict from the Fund in its latest annual survey of the UK.
Nissan Motor Co Ltd is recalling about 841,000 vehicles worldwide as a result of a steering wheel glitch.
A Ukrainian tycoon will on Thursday move to oust two top bosses of JKX Oil & Gas, a London-listed natural resources group.
The Bank of England's new regulatory arm has cooled its enthusiasm for a new form of capital that could be used to shore up lenders' balance sheets in a future financial crisis.