The FTSE100 is currently down 124.4 points at 5,496.5 while the FTSE250 is down 254.9 points at 8,726.3 and the FTSE Smallcaps is down 67.1 points at 3,279.5.

Volume is good with 1.22 billion shares changing hands in 158,417 deals.


Looking ahead to Wall Street this afternoon, the DJIA is expected to open around 40 points down at 10,752 after sliding 99.3 points lower yesterday to close at 10,792.6, amid heightened worries over inflation and interest rate moves.


CPI inflation was up 2.2% on the previous year. Reaching its highest rate since October 2005, lifted by higher domestic energy bills. It was also the first time since November 2005 that the CPI was above the Bank of England's 2% target, prompting fears of an interest rate increase in August.


Mining stocks stayed under pressure as investors continued to close positions right across the board, fearful of the impact of rising interest rates and the threat of the coming war with Iran.


The price of gold dipped below $600 an ounce today, while copper and silver prices were also weaker.


Today’s look at individual Stocks:


Kazakhmys was once again the top FTSE100 faller, down 66p at 955p, Antofagasta is also currently down 114p at 1,797p, Anglo American is down 115p at 1,828p and Xstrata is down 83p at 1,812p.


Oil stocks are also down today as the crude price slipped back on reports that the first tropical storm of the US Atlantic hurricane season, Alberto, will miss energy infrastructures in the rig-heavy Gulf Coast.


BP shares are currently down 12p at 595.5p, Shell is currently down 38p at 1,744p and the BG Group is also down 21.5p at 657p.


Alliance & Leicester became a big casualty this morning, losing 69p at 1,085p, as takeover hopes faded after rumoured bidder Credit Agricole of France said it has bought Greek banking group Emporiki Bank for €3.1 billion. HSBC had cast doubt on talk Credit Agricole could bid for the UK banking group, saying Alliance & Leicester's trading update yesterday shows the group's business is weak.


Royal Bank of Scotland shares were also weak today, down 76p to 1,697p, after an unexciting trading statement. In a pre-close trading update, the bank said it expects results for the first half, which are due on August 4th, to be in line with expectations. Merrill Lynch repeated its buy recommendation and raised its target to 2,328p.


There was only one blue chip gainer at midday today and the star of the show goes to BAT, which is currently up 4p at 1,358p.