The index of 100 leading shares opened down this morning as investor confidence was hit by stock sell-offs in the US and Asia.
In London, the FTSE opened down 1.32%, or 68.51 points, to 5,133.05, losing gains made on Friday.
Financials were the early fallers. Barclays shares lost 7.7p, or 2.53%, to 296.25p per share. RBS shares were also down in early trading, down 0.99p, or 2.28%, to 42.51p per share.
European stocks were also lower. The German Dax opened down 38.76 points, or 0.65%, at 5,912.41. In France the CAC was down 20.43 points, or 0.58%, at 3487.01 just after opening.
Disappointing personal income and spending data from the US are being blamed.
In New York on Monday, the Dow fell 140.92 points, or 1.39%, to close at 10,009.73.
This followed data showing personal incomes rose less than expected in July. A key report on jobs is due later this week.
Japan's Nikkei 225 stock average was also badly hit. It closed down 325 points, or 3.5%, overnight to 8,824 - its lowest close since April 2009.
A strong yen pummelled Japanese shares already dragged down after Wall Street fell amid pessimism about the US economy.
Dragging on sentiment was the yen's advance and disappointment over the central bank's decision to ease monetary policy by expanding a low-interest low programme. Markets had been hoping for stronger action.
