The FTSE 100 was off 1.2% or 80 points at 6,681 points, on a day which saw just two companies on the UK’s blue chip index make any gains.

Mining stocks were particularly affected after the IMF trimmed its 2013 China growth forecast from 8% to 7.75%.

Despite the drop, the index remains on course to complete its twelfth month of consecutive gains following a positive start to May.

Other indices across Europe were also in the doldrums this morning, with the French CAC 40 down 0.9% at 4,013 points, and the German DAX off 0.8% at 8,410.

Shares in Asia were also muted overnight with a small up tick for the Nikkei 225 of just 0.1% to 14,325, while the Hong Kong Hang Seng fell around 0.5% to 22,817.

The losses across Europe so far follow another record closing high for the Dow, which closed at 15,409 points in the US last night. The S&P 500 also climbed to close at 1,660 points.