LONDON'S top-flight index slid into negative territory as investors pulled out of financial stocks amid mounting concerns over the health of Deutsche Bank.
The FTSE 100 Index was down 10.37 points to 6,807.67, as London-listed lenders were dragged lower by the negative sentiment surrounding the German bank, which is facing a 14 billion US dollar (£10.7 billion) fine proposed by the US Department of Justice (DoJ).
It is feared the bank's capital buffers may not be able to cope with the settlement proposal linked to the sale of mortgage-backed securities in the run-up to the financial crisis.
Deutsche Bank closed down 0.4 per cent at 10.51 euros on Germany's Xetra exchange, while Royal Bank of Scotland and Barclays dropped 2.9p to 174.6p and 2.2p to 165.9p respectively in London.
The UK's premier index swung into the red after pushing higher at the beginning of the session when polls from across the Atlantic suggested US presidential candidate Hillary Clinton had emerged victorious in a debate with Republican nominee Donald Trump.
It comes after more than £23 billion was wiped off the FTSE 100 on Monday as the index was pulled lower by financial stocks and renewed fears of a Trump presidency.
In Europe, Germany's Dax was off 0.3 per cent and the Cac 40 in France dropped by 0.2 per cent.
On the currency markets, the pound was up 0.7 per cent against the euro to 1.16 euros and 0.2 per cent higher against the US dollar at 1.30 dollars.
Brent crude sank 3.4 per cent to 45.73 US dollars a barrel after Saudi Arabia and Iran poured cold water on hopes of securing an OPEC oil deal to curb output at a meeting in Algeria this week.
The move dealt a blow to Royal Dutch Shell, which emerged as one of the biggest fallers on the market, dropping more than two per cent or 42.5p to 1882.5p.
In UK stocks, shares in Plumb Center owner Wolseley sank after it announced plans to axe up to 800 jobs as part of a restructuring that will see it shut 80 branches and a distribution centre.
The firm dropped 56p to 4244p after it saw a sharp slowdown in growth in the UK market.
Tour operator Thomas Cook was also trading lower after it said bookings remained under pressure as the travel market continues to be hit by recent terror attacks.
The holiday giant revealed that while demand from British sun-seekers was robust over the summer, with bookings up one per cent, sales were hit hard in Germany and across Continental Europe, tumbling by nine per cent.
Shares were down 0.2p to 69.8p.
However, retailer Card Factory climbed 8.4p to 310.5p as it increased revenues and profits despite store sales taking a hit from slowing footfall on Britain's high streets.
The gifts and greetings cards retailer said like-for-like sales rose 0.2 per cent in the six months to the end of July, with softer footfall delivering "lower than normal" sales growth in stores.
The biggest risers on the FTSE 100 Index were Carnival up 171p to 3,726p, Pearson up 24p to 750p, Sky up 13p to 847.5p, Barratt Developments up 7.3p to 484.2p.
The biggest fallers on the FTSE 100 Index were Standard Chartered down 15.6p to 610.1p, Royal Dutch Shell B down 42.5p to 1882.5p, Royal Dutch Shell A down 38.5p to 1800.5p, Capita down 19p to 951.5p.
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