The FTSE fell for the third day in a row today amid concern that China may be forced to rein in its booming economy and curtail demand for raw materials.
Earlier today, the FTSE 100 was down 41.8 points, or 0.7 per cent, at 6,407.5 points, as equity markets in Asia and Europe sank after unexpectedly strong Chinese inflation data.
Mining stocks were one of the worst-performing sectors, as falling base metal prices such as copper hit shares of major firms.
The Chinese economy expanded at an 11.1 per cent pace in the first quarter of the year, roughly in line with expectations, but inflation hit 3.3 per cent, reigniting concern that the central bank will raise interest rates to curb excessive growth.
Bank shares also fell steeply on the FTSE as concern about rising interest rates riled investors after this week's surprisingly high inflation data. í
Barclays fell 0.6 per cent despite the Wall Street Journalsaying that the bank may find support from other big banks as it faces a rival consortium seeking to take over Dutch bank ABN Amro.
The newspaper said Spain's BBVA, Bank of America and BNP Paribas may enter the fray to oppose the rival consortium led by Royal Bank of Scotland (RBS) or buy ABN assets.
RBS shares slipped 0.4 per cent.