Footsie falls below 3,800

The London market has tumbled back below the 3,800 level as banks and insurers suffered sharp falls.

The FTSE 100 Index is down a hefty 124.3 points at 3782.9, after sentiment was hit by heavy losses on Friday in the US when a series of profit warnings pushed the Dow Jones Industrial Average down 295 points.

Shares are also being hit by a tumble in French reinsurer's Scor's stock after the group issued a cash call to investors.

Among the insurers, Royal & Sun Alliance has plunged 8%, or 8.75p to 96.75p, Aviva has dropped 15.5p to 361.5p and Friends Provident has eased 2.75p to 109.25p.

Prudential is also off 14.5p to 347.5p after it confirmed plans to set up an offshore service centre in India in a move that will lead to 850 job cuts in the UK.

Banks are also being hit hard, with Barclays down more than 5%, or 21p to 374.75p, Lloyds TSB down 15.5p at 489.5p and HSBC off 22p at 654.5p.