£36bn wiped off stocks as traders flee market

THE London market tumbled to its lowest close for nearly a month yesterday, knocking £36 billion from the value of shares and wiping out hopes that a recent rally could be sustained.

By the close of trading the FTSE 100 Index was down 152.3 points at 4028.6, its lowest finish since August 5.

Shares were hit by a slump on Wall Street as traders returned from a three-day break to further worries about the economy.