Nervous investors in the UK will be bracing themselves for a crucial day’s trading in London later this morning with the FTSE 100 Index struggling at a seven-year low.
Mounting tension over Iraq and uncertainty over the economy and corporate profitability have sent the Footsie on a record-breaking run of 10 successive falls.
And analysts believe the top-flight index will either rally sharply this week or tumble below the 3600 barrier – currently a critical support level.
The 9% plunge over the past fortnight has left the FTSE 100 at 3603.7 and raised yet more fears about the health of company pension schemes.
There are also mounting concerns about insurance companies, given the pressure falling stock markets put on their ability to meet their all-important solvency ratios.
Tomorrow’s State of the Union address by US President George W Bush, where he is expected to present a case for an attack on Iraq, could be key to determining sentiment for the week ahead.