Shares in London plunged today following heavy losses in Asia overnight, as intensifying fears over the state of the US economy triggered a wave of selling and talk of market meltdown.
The FTSE 100 index of leading shares was a sea of red, opening nearly 3% lower this morning and steadily ploughing new depths.
It closed at 5578.2 points, down 323.5 points or 5.48% on the day. That is the biggest percentage fall since September 11 2001, and the largest fall in points terms ever, wiping tens of billions of pounds off the value of Britain's biggest companies.
Miners and financial institutions were among the biggest fallers, as investors were unimpressed by a stimulus package for the ailing US economy announced by George Bush on Friday.
Only four FTSE 100 companies ended up higher than they started the day, led by insurer Friends Provident. It finished 3.6% higher at 158p after US private equity firm JC Flowers confirmed it was considering a takeover bid.
Northern Rock was a rare riser on the FTSE 250, gaining 46% to 90.8p on the back of the government's plan to turn its loans into bonds.
Tim Hughes, head of sales trading at IG Index, said it had been an "incredible day of trading".
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