US Department of Justice tells Glencore to hand over records of its business in three countries.Read more
News of that Glencore money-laundering probe really hit the FTSE 100, as our graph above shows.
The market's morning climb was immediately reversed, but it avoided falling into negative territory for the day and has begun to recover.
Top risers so far include BT Group, up 1.52%, and airline IAG, up 1.44%. Glencore leads the losers, falling more than 10% so far.
Glencore has received a subpoena from the US Department of Justice. It wants documents and records related to its business in Nigeria, the Democratic Republic of Congo and Venezuela from 2007 to present.
It is looking into whether Glencore broke US money laundering laws.
A subpoena is a court order which compels an organisation or person to produce physical evidence, or face punishment.
"Glencore is reviewing the subpoena and will provide further information in due course as appropriate," the company said in a statement.
Glencore shares have tumbled 9% after news of that US subpoena (see below).
Glencore mines and trades commodities and is a huge player in the industry. Pictured above is a copper smelter it owns in Zambia.
The FTSE 100 has been on a steadily downward dive since opening this morning. It's now down 93 points, or 1.22% at 7,588.
The biggest loser in the blue-chip index is Micro Focus, which has slumped almost 5%, or 67p, to 1,297.
The miners are also struggling with Anglo American down 3%, Glencore 2.,65%, and Antofagasta losing 2.53%.
Glencore shares were down more than 7% in afternoon trade. A report by Bloomberg suggests it may face an enquiry by the Serious Fraud Office into allegations of bribery, linked to its operations in Democratic Republic of Congo. No-one at the SFO has yet commented. And Glencore said it could not comment at this stage.
London's blue chip index has closed higher after ONS data showed a surprise fall in inflation in March.
The FTSE 100 gained 91.29 points, or 1.26%, to 7,317.34.
Mediclinic International was the best performer, rising 9.15% after it published strong annual results.
Commodities firms also gained as fears over US-Russia tensions pushed metal prices to levels not seen since December 2014.
Russia is a major producer of nickel and aluminium and some believe US sanctions could hit global supply.
Glencore was up 7.65%, Anglo American gained 6.15% and BHP Billiton was 5.5% higher.
Glencore chief executive Ivan Glasenberg has resigned as a director of Russian aluminium producer Rusal after the US placed sanctions on the company.
The British mining firm said it is “still evaluating the position under its contracts with Rusal”, but added that these contracts are “not financially material” to the business.
Rusal was founded by Chelsea owner Roman Abramovich.