The FTSE has dropped 50 points in early trading as traders sell-off of shares in Cable & Wireless and Corus.

The FTSE 100 was down 44 points at 4041.4 at 10am, reversing Tuesday's Vodafone-led gallop higher.

Corporate telecoms group Cable & Wireless sank 29% to 92 pence after it announced a restructuring plan costing £800m.

"Cable & Wireless was a very nasty surprise this morning," claimed a European trader, quoted by Reuters on Wednesday.

Insurance stocks have weathered the early storm. To view the latest insurance stock prices click here

Chaucer rose 4.8% to 32.50 points. Elsewhere Misys dropped over 2.48% to 197 points on the back of a employment tribunal held yesterday.

Allianz shed 3.17% to 6363 as investors opted for retail and software stocks.

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