FTSE falls towards 6000 barrier

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

London's benchmark index lost more than 3% of its value - equivalent to £50 billion - as the current turmoil in American sub-prime mortgages continued to force traders to re-evaluate their exposure to risk.

By lunchtime, the Footsie stood 227.4 points lower at 6043.8. It last closed below the 6,000 barrier in October of last year.

The fall accelerated during the session as traders tipped the Dow Jones Industrial Average to open lower, following a drop of nearly 400 points on Thursday night. The latest sell-off came after the European Central Bank pumped emergency cash into money markets and French bank BNP Paribas froze three funds.

As expected, financial stocks dominated the fallers board in London, with Barclays falling 6%, or 43.5p to 638p, Asian-facing bank Standard Chartered off 102p to 1558p and Royal Bank of Scotland 37p lower at 547.5p.

Fund manager Man Group topped the Footsie fallers board after it suspended the listing of two hedge funds on the US stock market on Thursday. The group fell 9%, or 47p to 480p.

The crisis overshadowed half-year results from financial services group Old Mutual, which was off 11.2p to 150.2p after posting a 12% drop in operating profits. The strength of sterling against the rand and US dollar caused the profits decline, with chief executive Jim Sutcliffe insisting the company's growth prospects would not be derailed by the current market volatility.

Only three stocks were in positive territory, while broadcaster ITV was flat at 107.5p as sentiment remained strong after interim results on Wednesday.

The FTSE 250 Index was down by more than 3%, led by software retailer Game Group after the Office of Fair Trading's decision to refer its Gamestation acquisition to the Competition Commission. The uncertainty caused by the referral left shares 23p at 148p, a drop of more than 13%.

Other FTSE 250 stocks caught by the market sell-off included Rightmove, which fell 9% or 49p to 513.5p, and Go-Ahead, which dipped 213p to 2413p. Rivals Stagecoach and National Express were down 15.5p at 184.5p and 81p at 1024p respectively.