FTSE plunges on economic uncertainty

The FTSE 100 has plunged in late morning trading as renewed concerns over the global economy end the recent rally powered by M&A speculation.

Shortly after 11.30, the FTSE was down 1.1%, or 58 points, to 5,176. Mining stocks were the biggest losers as economic uncertainty impacts metal prices. Vedanta Resources, Kazakhmys and Eurasian Natural Resources are all down at lunchtime.

The FTSE could fall further this afternoon following the release of key data from the US. Figures for US home sales, durable goods orders and revised second quarter GDP numbers are all expected later.

Housebuilder Wolseley, which has strong ties with the US, is leading the FTSE's fall into the red, down over 5%.

The negative sentiment is mirrored throughout Europe, with France's Cac 40 down 1.34% and Germany's Dax nearly 1% in the red.