LONDON, Nov 19 (Reuters) - Britain's top share index was 1.8 percent lower by midday on Wednesday, dragged down by miners and banks as global recession fears remained predominant despite the prospect of a likely further loosening in monetary policy.
At 1210 GMT the FTSE 100 .FTSE index was 76.39 points lower at 4,132.16 having closed 76.39 points, or 1.9 percent, higher on Tuesday.
Miners were a big drag on the FTSE 100 index as plummeting demand in the auto sector pushed commodity prices lower, with aluminium hovering close to three-year lows and copper dropping by 3.7 percent.
"When it comes to commodities, of course deflation is a major issue, but that won't always be the case," said Jeremy Batstone, an equities strategist at Charles Stanley.
"In two or three years' time we will be embarking on the first leg of a synchronized global upturn, at which point we'll see increased demand for oil," Batstone added.
Some banks were also big FTSE 100 losers after J.P Morgan Securities slashed its earnings estimates on the UK banking sector and cut share-price targets. [ID:nBNG377145]
HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) dropped 5.6 percent, with WestLB also cutting its rating to "sell" from "reduce", while Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) lost 6.2 percent, and Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) fell 1 percent.
"Banks remain very much in the spotlight as we're heading into a recession that will be deep and long," said Batstone.
"Investors are seeing a round of forecast reductions and a swathe of profit warnings. Generally speaking, that is the really serious sentiment problem the market is facing at the moment," Batstone added.
