FTSE slide continues

The London market suffered its worst week since the financial crash of 2008 as traders continued to panic that the world economy is heading for recession.

FTSE slide continues

The London market suffered its worst week since the financial crash of 2008 as traders continued to panic that the world economy is heading for recession.

The FTSE 100 Index fell 146.2 points to 5247 today, after improved unemployment data in the US failed to restore confidence in the strength of the world's biggest economy.

Today's grim figures mean the top flight has lost more than 10% of its value, or some £150bn (€172.2bn), in the past week - its worst fall since October 2008, which is widely seen as the start of the credit crunch. The market is at its lowest point for nearly a year.

There has been continued carnage across world markets today as the Dow Jones Industrial Average lost nearly 2% of its value in early trading amid rumours the US could lose its cherished AAA credit rating.

Traders struggled to find any light at the end of the tunnel amid ongoing global recession fears and worries that Italy and Spain, the eurozone's third and fourth largest economies, could default on their debt.

The price of gold rose to $1,658 (€1,163) an ounce as investors searched for safe havens.

The pound, which has been seen as a relative safe haven, was up against the dollar and the euro, at 1.64 and 1.15 respectively.

The eurozone debt fears had a major impact on the banking sector, with Royal Bank of Scotland off nearly 7% - or 2.1p at 28.2p - after taking a £733m (€841.31) results hit on its exposure to Greece's debt-laden economy.

The 83% state-owned bank reported a loss of £794m (€911.32m) in the six months to June 30, compared with a £1.1bn (€1.26bn) profit last year.

Lloyds Banking Group, whose shares have fallen to around half the value seen in the Government's £21bn (€24.1bn) bailout, were down 6%, or 2.1p at 32.8p.

The flight from risk meant heavy losses for the likes of Tullow Oil, which declined 62p to 1012p, and Cairn Energy after a 8.2p fall to 302.3p.

The market bloodbath intensified the pressure on IT services company Logica, which posted worse-than-expected half-year results, including a 10% drop in operating profits to £113m (€129.68m). Shares were hammered as a result, falling 14.4p to 88.6p or 14%.

Shares in Hovis and Mr Kipling owner Premier Foods have also been hit hard in recent sessions following a profits warning earlier this summer.

Half-year results reflected the pressure of rising food costs and sluggish demand, with profits down by a third to £42m (€48.2m). Premier's shares declined 18%, or 2.9p, to 13p.

The biggest Footsie risers were Glencore up 17.4p at 408.4p, Inmarsat ahead 8.2p at 402.7p, BSkyB up 11.5p at 671p, and RSA ahead 1.3p at 119.4p.

The biggest Footsie fallers were BT down 14p at 180.3p, Royal Bank of Scotland off 2.1p at 28.2p, Weir down 129p at 1731p, and Lloyds off 2.1p at 32.8p.

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