FTSE plummets towards 4200 barrier
The FTSE 100 Index has taken its slump over the last two sessions beyond 100 points as markets around the world came under pressure.
Concern over the impact of the weak US dollar on earnings has been blamed for the fall, which caused the Footsie to ease 54.4 points to 4202.6 by mid-morning.
The drop comes after a 60 point fall on Friday as some of the heat starts to come out of the London market.
Elsewhere, the Nikkei in Tokyo fell more than 4% overnight, while traders are also expecting a heavy fall for markets in New York this afternoon.
On the corporate front, dealers faced a feast of weekend press speculation, particularly in relation to the Safeway takeover saga.
With William Morrison expected to be the only company to get the green light from the Competition Commission inquiry into four of the bids, shares in the Bradford-based company rose 3.5p to 220.25p to the top of the Footsie risers board.
Safeway also stood 1p higher at 298.25p, but Tesco eased 3p to 239.5p and Sainsbury's slipped 4.25p to 289p.
And in a difficult session for the market, financial stocks were under pressure with Prudential down 10.25p at 453.75p, Legal & General 2p lower at 98p and Alliance & Leicester off 12.5p at 847.5p.
Outside the top flight, EMI confirmed speculation that it was in talks with Time Warner over a possible deal to buy Warner Music Group. But with any acquisition likely to involve the dilution of EMI shares through the offer of stock to Time Warner, the FTSE 250 Index company fell 2.75p to 155.5p, a drop of almost 2%.
Heading in the opposite direction was Manchester United as speculation over takeover interest from billionaire investors continues to circle the group. The stock gained 1.5p to 182.5p.
