The FTSE 100 share index has fallen to a fresh seven-year low as mounting fears over a war in Iraq threatened to further choke off an economic recovery.
The FTSE 100 was last down 80 points at 3,516 in opening trade, around lows not seen since November 1995.
Financial stocks took 12 points off the leading index amid fears the economy may struggle to recover as the United States gears up to attack Iraq.
"There's some concern over consumer spending in the UK and the United States and the war ahead is certainly not going to encourage capex spending," said Mr Stephen Hatton, analyst at online spreadbetting firm deal4free.com.
British Airways was the top faller, with shares in the airline falling 3 per cent after the chief of Spain's flag carrier Iberia said he saw no consolidation in the sector in the near term.
British Airways is a 10 per cent shareholder in Iberia and has said in the past it wished to increase its ties with the Spanish carrier.