London market slumps in early trading
The London stock market got off to a gloomy start today after another tough session on Wall Street rattled investors.
After an hour’s trading, the FTSE 100 Index of leading shares had dived 95.3 points to 4324.8.
The slump, which coincides with the publication later today of the Pickering review of the current pension system, means more bad news for investors.
Most traders were braced for a tough start.
In the United States last night, the Dow Jones Industrial Average closed 282 points lower on gloomy sentiment and ongoing corporate and accounting fears.
The tech-laden Nasdaq slid 2.5%.
Tom Hougaard, trader at spread betting firm City Index, said stocks were now in a precarious position.
"The sell-off last night smelled of fear, a ‘get-me-out-at-any-price’ kind of trading session," he said. "This is how a bottom is made but there is a 50/50 chance that today will be a 1987 all over."
Yesterday the FTSE 100 closed near five-year lows, off 122.8 points at 4420.1, with the equivalent of £29bn (€45bn) wiped off share values.
It has been a turbulent month for global equity markets and last week the FTSE 100 slid to levels not seen for more than five years to close at 4392.6.
