Fears that time has run out for US politicians to hammer out a deal to avoid a so-called fiscal cliff sent world markets into the red once more today.
London’s FTSE 100 Index lost early session gains to stand 28.9 points lower at 5,925.4, as investors fretted that President Barack Obama would be unable to secure a deal to avoid a package of automatic spending cuts and tax increases.
Miners and insurers were among those topping the fallers board, with insurance giant Admiral the biggest FTSE 100 casualty, down 22p to £11.76.
Rival Prudential was down 12p to 865p, with Aviva losing 5p to 375.7p.
Gold and silver producer Polymetal International was off 20p to £11.69, while troubled platinum miner Lonmin was 2.6% lower in the FTSE 250 after confirming that chief executive Ian Farmer had stepped down due to a serious illness.
The group, which was thrown into turmoil amid violent strikes at its South African mine over the summer, has drafted in headhunters to help find a successor to Mr Farmer. Shares fell 7.5p to 278p.
Investors looked to the safety of supermarket stocks amid the wider market falls.
Morrison topped the risers board up 1.5p to 262.7, with Tesco coming in second up 1.5p to 337.5p in the FTSE 100.
The biggest FTSE 100 risers also included Aberdeen Asset Management up 1.5p at 367.2p and Melrose Industries ahead 0.9p at 231.7p.
Among the biggest FTSE 100 fallers were International Consolidated Airlines off 3.3p at 184.7p and BT off 3.6p at 234p.
Carrie Keenan, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted Faroe Petroleum amongst the day’s limited Scottish risers, the shares gaining 0.74% at 138p. Elsewhere, Eland Oil & Gas added 0.65% at 116.25p.
Fallers included FirstGroup, which shed 1.04% at 208.3p. Meanwhile, Weir Group lost 0.85% to close at £18.76 and BP gave up 0.79% at 425.05p.