EmailTesco's shock admission it overstated profits along with a slump in mining shares has sent the stock market sharply lower.
The supermarket group is down 8% at 210.85p, having earlier fallen as low as 202.5p, after it suspended four senior executives and called in investigators in the wake of overstating profits by £250m.
On top of that the commodities sector has been undermined by fears of a slowdown in the Chinese economy. Prices of metals such as iron ore are falling on talk the country - a key consumer of commodities - could see a fall below 50 in Tuesday's initial purchasing managers index, showing contraction.
So the FTSE 100 - which edged up slightly on Friday on relief at the no vote in the Scottish independence vote - has fallen 37.89 points to 6800.03. Rebecca O'Keeffe at Interactive Investor said:
Although the political fall-out from the Scottish referendum continues, the markets have moved on and the focus of attention has shifted to the significant global financial risks that persist. The mounting concerns about Chinese growth and the increasing possibility that it may not meet its 7.5% growth target are weighing heavily on the market in general and in the commodity sector in particular. In addition, with the G20 increasingly concerned that major economies are relying too heavily upon monetary stimulus to support growth, we may well see a shift in sentiment as investors become increasingly nervous.
There are other concerns, with a speech by European Central Bank boss Mario Draghi in focus. Jasper Lawler, at CMC Markets UK, said:
Investors will be looking for some answers from ... Draghi in his speech to European parliament at 2pm BST over the viability of the Long Term Refinancing Operations, or LTROs. The stimulus measures didn't lend out as much as some had hoped and are leading to questions over whether the policy should be abandoned before it even gets started in favour of a more direct QE approach to addressing Europe's problems.
Back with the mining sector, and Rio Tinto is down 101.5p at 3077.5p, Anglo American is off 43.5p at 1428.5p and BHP Billiton is 41p lower at 1752.5p.
Meanwhile Glencore has fallen 11.3p to 348.15p after a pricing dispute with iron ore miner London Mining, down nearly 7% at 24.25p. London Mining said the dispute was about a cash payment which Glencore refused to pay.
Meanwhile Tesco's woes seem to have hit the rest of the sector, with J Sainsbury down 9.1p at 275.2p and Morrisons 4.5p lower at 177.5p.
Elsewhere Royal Dutch Shell B shares have climbed 10.5p to 2515.5p as Thai oil and gas exploration group PTT agreed to buy a 20% stake in a Brazilian offshore concession.
