Banks have led the FTSE 100 lower as investors took their cue from across the pond, after US markets suffered their biggest fall this year on fears over the prospects for president Donald Trump's growth agenda.
The UK blue-chip index fell 64 points, or 0.9%, to 7,314, extending a sell-off that began yesterday afternoon as US markets opened. Over the two sessions it is down 113 points, or 1.5%.
That followed the S&P 500's 1.2% slump yesterday, breaking a run of 109 trading days without a fall of 1% or more, while the Dow Jones and Nasdaq also suffered their biggest falls of the year.
The falls came as investors questioned Trump's ability to deliver his economic growth agenda which has powered markets higher since his election in November.
Trump is struggling to implement healthcare reforms, leading to fears delays on that front could derail attempts to cut taxes and boost infrastructure spending.
'After two months in office, markets want proof not just promises, fearful that the healthcare reform Trump is using to put a stamp on his presidency could delay the tax cuts and infrastructure spending markets desire so much more,' said Mike van Dulken, head of research at Accendo Markets.
On the FTSE 100, banks bore the brunt of a broad-based sell-off, with every sector in the red and only a handful of stocks making minor gains.
Barclays (BARC) fell 3.2% to 222.6p, Standard Chartered (STAN) was down 3% at 709.9p, Royal Bank of Scotland (RBS) dropped 2.3% to 760p and Lloyds (LLOY) traded 1.7% lower at 67.6p.
Miners also suffered heavy falls. Rio Tinto (RIO) was down 2.6% at £32.40, BHP Billiton (BLT) fell 2.6% to £12.50, Anglo American (AAL) dropped 2.3% to £12.18 and Glencore (GLEN) traded 1.7% lower at 324.4p.
But the biggest faller on the index was Kingfisher (KGF), down 5.4% at 327p as the B&Q owner warned uncertainty over French and British politics could hit demand.