Panic derails recent efforts at recovery

PANIC on global stock markets has derailed the recovery of London’s blue chip index since its crash in 2008.

The banking crisis three years ago sparked a dramatic slump in world markets that saw the FTSE 100 drop 37% from 5,600 in September 2008 to 3,550 in March 2009. In all, shares fell nearly 50% from mid-2007.

But until the recent slump, the market had clawed back most of its losses in a bull run that has seen it rise to 6,100 – close to its previous peak.