FTSE 100 tumbles toward 4,000 mark

The FTSE 100 continued to slide after initial gains and looks set to dip under the 4,000 mark.

The index fell 16 points to 4,017.73 by 09:20 GMT, with insurers and property firms leading the decline.

Residential and commercial developer Hammerson dropped the furthest with a 5.27 per cent dip, while Legal & General Group fell 4.42 per cent after yesterday's gains.

Several defensive stocks, including pharmaceutical, food and drink firms were still rising.

Guinness brewer Diageo was up by 1.46 per cent, while Shire rose 1.10 per cent and Cadbury climbed 0.59 per cent.

Overnight, grim manufacturing data and worries over the stability of banks led to a sell-off as US markets sank to November lows.

The Dow Jones was off 3.8 per cent and the S&P down 4.6 per cent.