FTSE and Dow drop 1.2% on global market jitters

The FTSE 100 has fallen 1.2% this afternoon as eurozone debt fears and reports of hostilities between North and South Korea continued to dent investor sentiment.

Man Group was the biggest faller, down 3.57% to 278.2p, but miners accounted for the bulk of losses. Vedanta Resources declined 3.47% to £21.44, while Antofagasta was down 3.35% to £13.29 and Kazakhmys fell 2.85% to £13.99.

However, gold miners were some of the biggest climbers on the index, reflecting fears about the outlook for the global economy. Fresnillo advanced 1.78% to £14.29, while Randgold Resources was up 0.92% to £60.60.

Among the banks, Asia-focused Standard Chartered was the worst performer, down 2.04% to £17.49, followed by Barclays dropping 1.37% to 266.3p and HSBC declining 1.01% to 647.2p

In Europe, Germany's Dax dropped 1.42% to 6,725.44 as France's CAC 40 fell 2.04% to 3,741.17.

Meanwhile on Wall Street, the Dow Jones also started the day lower, also down 1.2%.