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According to Reuters, the benchmark index was down 0.7 per cent to 5,706.09 points by 13:09 BST, with travel firms and banks leading the slide.
There were drops of as much as 1.5 per cent for Standard Chartered, HSBC and Barclays, while shares in travel firms were hit as the cloud of volcanic ash continued to prevent airlines from operating.
British Airways and easyJet shed 3.3 per cent and 4.3 per cent respectively, while Thomas Cook retreated by 4.4 per cent and TUI Travel lost 3.8 per cent.
Interest in defensive stocks rose as investors steered away from riskier options, causing BT Group, AstraZeneca and British American Tobacco to all climb.
The decline on the FTSE was coupled with a fall in the pound, which slid again due to continued worries the upcoming general election will result in a hung parliament.
Posted by Greg Secker
