The FTSE 100 is expected to fall sharply again after Wall Street extended its losses overnight and fears over Argentina defaulting on its massive debt, more terrorists attacks and gloomy US economic data preyed on sentiment, dealers said.
Financial bookmakers IG Index forecast the FTSE 100 would fall by 75 points, while Cantor Index predicted the market would open at 5,005.9 points down from yesterday's 5,085.9 point finish - at the bottom of the FTSE's 5,000-5,200 trading range and unwinding last week's 3.4 per cent gain.
Worries that Argentina will default on its $132 billion debt frayed the nerves of US and Asian markets and dealers said London would follow suit.
The market will also pore over the US consumer confidence figures due at 1500 GMT. This is the first in a raft of US data this week which will paint a bleak picture of the economy.
Analysts said Wednesday's GDP numbers were likely to make unpalatable reading and Friday's unemployment figures would continue to rise.
British wine and spirits group Diageo said on today it expected its duty free business to be hit by the fall in world travel and rival Allied Domecq reported a rise in year pre-tax profits.