LONDON April 10 (London) - Britain's top share index plunged on Tuesday to surrender almost all its remaining 2012 gains, led by falls in risk-sensitive miners, oils, and banking stocks after last Friday's weak U.S. jobs data undermined global economic expectations.
The FTSE 100 index closed down 128.12 points, or 2.2 percent, at 5,595.55, its second biggest percentage fall of the year after dropping 2.3 percent last Thursday.
The unease was also reflected in the FTSE 100 Volatility index, which leapt nearly 23.5 percent.
The FTSE has almost completely wiped out the gains so far this year ... 2012 is at risk of being a carbon copy of 2011 where equity markets began the year with a spring in their step before sentiment turned very bearish as the European sovereign debt crisis spiralled out of control, said Angus Campbell, Head of Market Analysis, Capital Spreads.
The UK blue chip index started 2012 at 5,572.28 and hit a closing peak of 5,974.54 on March 14.
Miners knocked the most points off the blue chip index as the U.S. jobs data, weaker copper import figures and higher inflation in China, the world's biggest metals consumer, fed investor doubts about demand.
India-focused Vedanta Resources was the biggest blue chip faller, shedding 6.5 percent after posting a drop in full-year iron ore output.
Integrated oils were also lower after the Chinese data raised doubts about demand in that sector too.
Banks suffered from heightened worries about the global economy and euro zone debt risks.
Barclays was a big faller, down 5.9 percent. In a shareholder rebellion over CEO Bob Diamond's 18 million pound pay package, more than 10 percent of investors are set to vote against the bank's remuneration report at its annual meeting later this month, newspapers said.
WALL STREET WEAK
U.S. blue chips were were 0.8 percent lower by London's close, with Wall Street extending its losing streak into a fifth-straight session ahead of the start of the U.S. first-quarter corporate earnings season.
Alcoa will be the first Dow component to report results, after Tuesday's closing bell, with bellwethers Google and JPMorgan Chase also announcing results this week.
JPMorgan is cautious in the near term on equities, saying it is unlikely first-quarter results will restore confidence. Weaker topline growth and stalling macro momentum argue against strong improvement in corporate guidances, it said in a note.
Back in London, Randgold Resources was the top of just five FTSE 100 gainers, adding 5.2 percent on hopes for a political settlement in Mali after the resignation of the African country's president and as the gold miner confirmed its production target for the year.
(Editing by Ruth Pitchford)