CLOSE: The FTSE 100 has ended the day down 0.4 per cent to stand 5,868.16.
The blue chip index fell almost 1 per cent in early trades led by falls in the mining and banking sectors, but recovered some of those losses on Tuesday afternoon.
World markets have come under pressure after eurozone debt fears returned to the fore and mounting political tensions between China and Japan troubled investors. This comes after the US Federal Reserves’ decision to launch a third bout of quantitative easing pushed the FTSE 100 towards a six-month high at the end of last week.
In Europe, the French Cac 40 and the German Dax were down 1.2 and 0.8 per cent respectively. While the FTSEurofirst 300 was down 0.1 per cent.
13:48:The FTSE 100 has lost 0.6 per cent on Tuesday to stand at 5856.24.
The French Cac 40 and the German Dax are both down 0.7 per cent.
11:37: The FTSE 100 has fallen almost 1 per cent on Tuesday morning as banks and miners drove the benchmark index lower.
The index currently stands at 5846.01, a fall of 0.8 per cent with Aviva the biggest faller down 4.5 per cent.
Vendanta Resources and Kazakhmys are among the biggest fallers in the mining sector, while Royal Bank of Scotland has recorded the largest fall in share price across the UK banking sector.
Across Europe, the French Cac 40 and the German Dax are down 1.2 and 1 per cent respectively.
10.02: FTSE 100 has continued to give up more of the gains seen after last week’s stimulus measures from the US Federal Reserve.
At 10.02, the blue chip index was 0.7 per cent to stand at 5850.61. Markets across Europe have also fallen with the FTSEurofirst down 0.6 per cent.
Insurer Aviva was the biggest FTSE 100 faller, down 4.2 per cent, after Bank of America Merrill Lynch said the shares looked to have run their course following a decent performance since July.
8.40: The FTSE 100 has fallen for a second day with miners leading the losses for the blue-chip index in early trades.
At 8.40, the index was down 0.7 per cent to stand at 5852.32, while the French Cac 40 and the German Dax were down 0.9 and 0.8 per cent.
The falls come amid geopolitical concerns surrounding China. Asian markets were lower Tuesday as growing tensions between Beijing and Tokyo over disputed islands continued to hurt investor sentiment, with shares of companies with significant exposure to China struggling in Japan.
Meanwhile, US President Barack Obama has for the second time in as many months filed a suit against China for unfair trade practices, raising tensions between the two nations.
Aviva was the biggest faller in the FTSE 100 with its shares down 4.6 per cent. Eurasian Natural Resources and Vedanta Resources were both among the biggest fallers having seen their shares drop 3 and 2.6 per cent respectively.