The FTSE 100 Index fell 117.9 points, or 2.1%, to 5533.9 amid worries that a raft of Spanish regions were poised to ask for government bailout funds, increasing the likelihood that the country itself will turn to the EU for help.
The fall wiped nearly £30 billion from the value of London's leading shares index, with all 100 companies losing value and banks falling up to 4%.
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The child died on her injuries and another 14-year-old girl was injured after the buggy they were travelling in was involved in a car crash.
Cloud thickening from the west throughout the day. Rain in northwest later.
The Songs of Praise presenter has voluntarily agreed not to appear on BBC whilst an investigation takes place.