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Full Version: Dow Jones debacle sends London shares plunging
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Shares fell sharply in London this morning as nervy traders reacted to last night's alarming fall on Wall Street, when the Dow Jones closed at its lowest point in the current crisis.

The growing likelihood of a prolonged global recession pushed the FTSE 100 index below the psychologically important 4,000-mark in early trading. The blue chip index shed 2.3%, and was down by 92.6 points at 3925.7.

Analysts said that market confidence had been badly hit by last night's trading on Wall Street, when the Dow Jones index closed at 7,465.95, its lowest level since October 2002.

"The Dow trading below its November lows and closing at its lowest for seven years is hugely significant and is ominously a major sell signal in its own right. US stocks are already indicated lower still for today," warned Martin Slaney, the head of derivatives at City spread-betting firm GFT.

"It's a result of a relentless barrage of poor economic news which is causing a fundamental basis change in attitudes to the length and depth of the global recession. We are witnessing a forlorn reassessment of the scale of the mess that the global economy is in," Slaney said.

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