City plunges more than 4% to reach new five-year lows

THE London market suffered another bloodbath yesterday, plunging more than 4% to reach fresh five-year lows as investors suffered a deepening crisis of confidence.

By the close of trading, the FTSE 100 Index was down 190.1 points at 4230, sliding through its recent low of 4392 to reach its lowest point since April 3 1997.

More than £45 billion was wiped off the value of blue chip stocks in the session, which followed Wednesday's 122.8-point dive.