Britain's top share index fell 1.2 percent in early trade on Tuesday with miners weak after big losses from U.S. aluminium producer Alcoa (AA.N) and on demand concerns, while gloomy UK economic surveys also weighed.
By 0857 GMT, the FTSE 100 index .FTSE was 53.89 points lower at 4,372.30, falling for a fifth straight session, having closed 22.35 points or 0.5 percent lower on Monday, with all the gains made at the start of the year now erased.
Miners headed the blue chip fallers list after Alcoa posted a bigger than forecast fourth-quarter loss as the global economic crisis sent revenue plummeting on lower demand and declining metal prices. [ID:nLD705022]
Rio Tinto (RIO.L) was the top FTSE 100 lower, down 5.7 percent, while Xstrata (XTA.L), Vedanta Resources (VED.L), Antofagasta (ANTO.L), and Kazakhmys (KAZ.L) lost between 3.5 and 4.4 percent.
"The big sectors are down today. Miners after poor results from Alcoa from the U.S. overnight seem to be weighing actually it's more broader though," said Rob Griffiths, strategist at Cazenove.
"It's the growth outlook globally it's deteriorating and it continues to deteriorate. I think that is why those sectors are struggling at the moment," Griffiths added.
Banks fell back as a recent rally was curtailed by weakness from U.S. peers overnight amid quarterly earnings worries.
Royal Bank of Scotland (RBS.L), a big gainer on Monday, shed 4.55 percent. RBS has a total exposure to bankrupt U.S. chemicals group LyondellBasell of $3.5 billion according to a report in The Independent newspaper. [ID:nLC349602]
Lloyds TSB (LLOY.L), HBOS (HBOS.L), Barclays (BARC.L) and HSBC (HSBA.L) fell between 0.3 and 3.4 percent.
Gloom on the British economy added to the negative backdrop as three surveys released on Tuesday highlighted the tough environment that companies are facing.
