London's leading shares fell up more than 100 points at the opening this morning in response to another pounding on Wall Street.
At 8.20 a.m. the FTSE-100 was down 106 points or 2.7 per cent at 3,801.4 points, taking its cue from a 300-point drop on the Dow Jones on Friday after bearish analyst forecasts for General Electric and a profit warning from tobacco giant Philip Morris hit sentiment.
Bank stocks - among the most sensitive to economic worries given their vulnerability to market weakness - took 33 points off the index; oils took off a further 25 and pharmaceuticals another 30 points.
Dealers said the two-day rally at the end of last week was history and warned of high volatility in the last day of the quarter.
The FTSE had closed up 56 points at 3,907 on Friday, but most of the Dow's fall took place after the London market had closed.