FTSE down 1% on Ireland election demand

The FTSE 100 fell almost 1% this afternoon, reversing early morning gains, due to rising political uncertainty in Ireland.

At 1.40pm, the UK index of leading shares was down 0.91% or 52.39 points to 5,680.44 following a call from the Green Party, a coalition partner in the government, for a general election.

Banks were the biggest fallers on concerns about their level of exposure to Irish debt. Royal Bank of Scotland plummeted 3.93% to 40.13p, while Lloyds Banking Group dropped 3.43% to 64.43p.

Insurers also suffered with Legal & General declining 2.97% to 94.65p, as Standard Life fell 2.65% to 217p.

Risers included TUI Travel, up 2.14% to 205.10p, while Compass Group rose 1.89% to 539p.

In Europe, Germany's Dax fell 0.21% to 6,829.37 and France Cac 40 was down 0.66% to 3,834.84.