FTSE 100 opens down 2%

European markets saw falls this morning – with the FTSE 100 falling 2.3 per cent on opening.

The London index has since regained some strength and by 8:51AM BST it stood at 4,180.40 – a drop of 49.33 points or 1.17 per cent.

Fears of recession have also hit European markets – with the Cac 40 in France down 1.97 per cent and Frankfurt's Dax down 1.95 per cent.

Over night in Asia, the Nikkei dropped 6.79 per cent and the Hang Seng was down 4.98. In New York the Dow Jones closed down 2.50 per cent after a another rocky day.

In London, the miners dragged down the index as fears of recession and slowing demand for commodities hit.

Xstrata was down 6.54 per cent, Vedanta Resources dropped 6.52 per cent, BHP Billiton was down 6.31 per cent and Antofagasta was down 6.31 per cent.

Royal Bank of Scotland continued its recent volatility – magnified by its low share price of 74.20p – and was down 6.43 per cent.

However, growing demand for gold saw precious metal miner Fresnillo rise 5.75 per cent.

Power generator Drax was up 4.96 per cent, builders merchant Wolseley gained 4.91 per cent, BG Group was up 3.38 per cent and Guinness-brewer Diageo was up 2.42 per cent.