TIMESONLINE: London's leading shares today tumbled by 134.1 points as the pound slid to its lowest level against the dollar since July 2006 and fears rose another Wall Street bank is close to collapse.
The FTSE 100 index of blue chip stocks fell to 5,373.4 points in early trading, after investors were also spooked by a warning from the Bank of England's Deputy Governor, Charles Bean, that the current slowdown will continue for a "considerable time".
The index was dragged down by mining companies after the price of copper in China slumped while the dollar strengthened against sterling, sending the pound down to a two-year low at $1.84.
Today's fall in the FTSE follows a torrid day in the US yesterday when the Dow Jones industrial average closed 2 per cent lower, on speculation that another investment bank is set to follow in Bear Stearns footsteps, and seek a bail-out to stop it from going under.
British investors were also unnerved by comments on the UK economy from Mr Bean who said yesterday: "We have our fingers crossed but there is the recognition there is still quite a long way to go yet. FTSE Falls as Sterling Falls to Two-Year Low >>> By Dearbail Jordan | August 26, 2008
BBC:
Dollar Increases against the Euro: The dollar has climbed back to a six-month high against the euro, as continuing fears about the European economy hit the single currency >>> August 26, 2008
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