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14.50: The Dow Jones has plummeted 3 per cent or 332.4 points to 10,792.44 on a third straight day of losses.In London, the FTSE 100 is 238.8 lower at 5,049.6.
Risk: Wall Street investors are worried that the Fed’s latest plan will have little effect on lending in an economy that appears to be stagnating.
14.15: The FTSE 100 is trading 270.6 points lower at 5,017.8 – close to the psychologically key 5,000 level.More market woe is anticipated when Wall Street opens shortly, with futures trading indicating a sharp fall on the Dow Jones.Sandy Jadeja, chief technical analyst at City Index, said: ‘With today’s decline across all markets support levels are being broken and this suggests that we could be facing another major leg to the downside. ‘Both the FTSE 100 and Dow Jones are now trading within a hairline of prices which if violated is likely to set the stage for a very nasty September to October period. Gold prices have also now turned short term bearish with today seeing the metal reaching the key $ 1,750 price level.’12.55: The FTSE 100 has slumped deeper into the red after after bleak comments from US Federal Reserve chairman Ben Bernanke stoked recession fears.The index is down 5 per cent or 251.5 points at 5,036.9, and investors are bracing themselves for more turbulence when Wall Street opens later.
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Capital Spreads chief executive Simon Denham said: ‘It’s the ever-increasing threat of another recession that is really spooking investors.’Mining stocks have led the rout in London as investors feared a slump in demand for mineral resources. Fallers included Kazakhmys, which lost 10 per cent of its value with a drop of 96.75p to 869.25p, while Antofagasta was down by 105.5p to 1008.5p and Rio Tinto dipped 326.5p to 3062p.Financial stocks were also battered after Moody’s downgraded the credit ratings on three big US banks and argued that the US government was more likely to allow a major institution to fail because contagion could be contained.Barclays was down 7 per cent or 10.4p to 142.8p while Lloyds Banking Group slumped 2.4p to 33.8p and Royal Bank of Scotland dropped 0.8p to 22.6p. Among the insurers, Prudential was hardest hit after shares fell 44.5p to 552.5p, off 7 per cent.
Even luxury goods group Burberry suffered in its sell off, with its shares nearly 10 per cent lower, off 149.5p at 1358.5p.TUI Travel shares were down 4.78 per cent or 7.40p to 147.50p following its trading update.Higher fuel and accommodation costs will push up the price of summer holidays next year, it warned. Read more here.EasyJet made impressive progress after it announced plans for a shares windfall. Shares rose 7 per cent despite the wider market turbulence, up 20.85p to 332.85p.JD Sports Fashion added 13.75p to 844.25p in the wake of its half-year results on Wednesday.10.30: London’s leading share index has racked up a 4 per cent loss as investors take fright over the plight of the U.S. economy. The FTSE 100 is down 208.4 points at 5,080, while the top markets in Germany and France also plunged 4 per cent.Federal Reserve chief Ben Bernanke warned that there were ‘significant’ risks as he unveiled emergency action in the form of a economic stimulus ploy dubbed Operation Twist.The Fed is to launch a $ 400billion (£253billion) programme to try to reduce borrowing costs for firms and individuals by buying long term bonds.But traders had been hoping for a bigger package and the Dow Jones Industrial Average slumped by nearly 300 points. Asian markets also fell heavily overnight. HSBC’s China Flash PMI survey showed
factory output fell for a third consecutive month in September,
pointing to a slowdown in the world’s second largest economy. The
data suggested that China, the engine room of global growth in recent
years, may not be able to provide much of a counterweight to flagging
U.S. and European growth. David Jones, chief market strategist at spreadbetter IG Index, said: ‘It’s an ugly start for shares in London, following last night’s update from the US Federal Reserve. ‘A downbeat outlook for the economy combined with the so-called Operation Twist economic stimulus not going far enough in many people’s eyes led to a heavy sell-off into the US close, which has overflowed into early European trading.’Fears that a full US recovery could still be some way off meant miners bore the brunt of the selling in London.Rio Tinto was 221p lower at 3166p today, with copper miner Kazakhmys 72.5p lower at 395p and Antofagasta down 71p at 1042p.Airline easyJet jumped 7 per cent or 23p to 335p after it announced a £150million special dividend – on top of a £40million maiden dividend – and said profits for the year to the end of September were set to beat expectations.8.30: The FTSE 100 has plunged 140.1 points to 5,148.3 as traders react to the weakening economic outlook in the U.S. and China.Germany’s DAX is down 162.7 points at 5,271 while France’s CAC 40 is 78.9 points lower at 2,856.Shares in TUI Travel fell 5 per cent or 7.6p to 147.3p after a trading update. Stocks to watch today include: Scottish & Southern: Scottish & Southern Energy is in talks to pull out of a consortium planning to build a nuclear power plant in the UK, as the company seeks to concentrate on renewable energy, the Financial Times reported. Cookson, Morgan Crucible: The two British engineering groups saw their shares rise on Wednesday on vague talk of possible consolidation in the sector, said the Daily Express market report. United Utilities: The multi-utility issues a trading update. TUI Travel: The tour operator issues a trading update. CSR: The chief executive of CSR, Joep van Beurden, said the Cambridge-based chipmaker was looking actively for acquisitions to diversify away from its dependence on the mobile phone industry, according to the Financial Times. Euromoney: The media group issues a trading update. Betfair: The online betting exchange holds its annual general meeting. SuperGroup: The fashion group holds its annual general meeting. Micro Focus: The IT firm holds its annual general meeting. Vitesse Media: The business media group reports first-half results. Assura Group: The healthcare property group issues a trading update. Sinclair IS Pharma: The specialty pharma firm unveils full-year results. Altitude Group: The IT services provider posts first-half results. Energetix Group: The alternative energy firm delivers first-half results. NWF Group: The agricultural and distribution firm holds its annual general meeting. Adept Group: The telecoms provider holds its annual general meeting. Zoo Digital: The media production software firm holds its annual general meeting. Conexion Media: The entertainment and media group holds its annual general meeting.
