FTSE loses more ground after global sell-off

The FTSE continued to fall in morning trading on Wednesday following yesterday's massive sell-off in global shares on escalating fears about the economic recovery.

By 11.30 GMT, London's blue chip index was almost 22 points lower at 5,134, a drop of 0.4%.

Yesterday, the FTSE closed down 78.89 points at 5,155.95 while yields on safe-haven long-term Government bonds fell to the lowest on record at 2.876%.

Markets were hit around the globe with Japan's Nikkei down 1.3%, crashing below the 9,000 barrier for the first time in 15 months. Poor housing sales data from the US also pushed the Dow 1.3% lower at 10,040.45.

Investors will be hoping the FTSE can withstand further pressures this afternoon and stave off larger losses.

Winners in early trading include services provider Serco Group, up 2.6%, and Admiral Group, which has advanced 3.5% to £15.25.

However, miners are in the red with Tullow Oil the largest loser down almost 6% to £12. 21, while Eurasian Natural Resources, Kazakhmys and Xstrata have also lost ground.