FTSE 100 flat in early trade

The FTSE 100 remained flat in early trading at 4,433.62, weighed down by mining and financial stocks.

The blue chip index dropped 1.88 points by 09:00 BST, led by a 4.84 per cent fall in Imperial Tobacco.

Barclays shares were also trading lower, by 4.36 per cent, while Eurasian Natural Resources dropped by 3.77 per cent.

Supporting the index was a mix of travel and retail stocks.

InterContinental Hotels shares rose by 4.94 per cent, British Airways was up by 2.83 per cent, while DIY chain Kingfisher jumped 1.97 per cent.

Over in the US, the Dow Jones was off by 1.8 per cent last night, while the S&P 500 fell by 2.2 per cent.

With financials rising above their recent depressed levels after relief banks are healthier than was thought, investors took the chance to realise profits, leading to widespread sell-offs.