The FTSE has fallen this morning in the first session since the long weekend, slipping 51.94 points (-1.06%) to 4856.96 at 10am.
Europe's other major indices have also opened weaker, with the German Dax already 125.26 points (-2.27%) lower to 5392.09 shortly after 10am. The French CAC 40 is 23.58 points (-0.65%) down at 6329.96.
Stock indices are so far weighed down following a sizeable drop across world markets on Monday, particularly in Asian indices, where the Shanghai plummeted 6.7%.
Having attained consecutive monthly gains across July and August – adding 6.5% last month – the UK's leading index has also been knocked back today as investors take profits. Analysts believe that today's profit-taking following the gains seen over recent weeks, allied to the traditional weakness during September and October, is likely to lead to a relative lull over the short-term.
There is some evidence so far of a shift towards more defensive stocks, with AstraZeneca leading the FTSE 100 at 10.30am, 55.5p (+1.95%) stronger at 2895.5p. Fellow health care stock GlaxoSmithKline is also among the leading five shares so far, 14p (+1.16%) stronger at 1217p. British American Tobacco was another stock benefting from the switch in sectors, up 34p (+1.81%) to 1908p.
Conversely miners are heading the FTSE's fallers, with Eurasian Natural Resources (-4.97%), Lonmin (-4.86%), Kazakhmys (-4.65%) and Antofagasta (-4.63%) all in the red on Tuesday morning.
There is a similar picture within the banking sector, with Lloyds Banking Group (-3.88%) the biggest faller soon after 10.30am. Also weaker are Royal Bank of Scotland (-3.73%), HSBC (-2.92%) and Barclays (-2.52%).
In economic news, the UK's total personal debt level has reduced for the first time since records began 16 years ago, according to the Bank of England. Personal borrowing fell by £600 million overall in July, largely due to a sharp fall in outstanding mortgages. Meanwhile the latest mortgage approval figures, released this morning, climbed for a sixth successive month to 50,123. While this latest data suggests a continued thawing in the housing market, there remains a significant deficit in activity when compared with previous years.
Looking ahead, US futures are currently indicating a lower open to markets across the Atlantic, with the S&P 500 around 0.7% lower. This afternoon, manufacturing, construction and home sales data feature on the US economic calendar.
