Footsie ruffled by losses in US and Far East

The Footsie index of 100 leading stocks is down 50.6 points as London investors are sent reeling by further losses overnight in the US and the Far East.

The index stands at 5776.1 after the first hour of trading on the London Stock Exchange, having rallied from an earlier low point of 5746.8.

Economists are predicting that the market could fall significantly lower, even dropping below the 5700 barrier.

Swedish mobile phone giant Ericsson is the latest technology stock to add to the negative sentiment. It issued a warning in the US last night that profits in the first quarter would be lower than previously expected.

This added to the bear run on the tech-dominated US Nasdaq, which was pushed to its lowest close since December, 1998, down 6.3% at 1923.38. The fall hit the Dow Jones Industrial Average, which plummeted 436.37 points to 10,208.25.

Blue-chip stocks in the UK are following suit today, with tech stocks leading the way. Only 11 of the top 100 blue-chip companies are on the increase in early trading.

Software groups Misys and Sage are down 24½p at 555½p and 12p at 284¾p respectively, while computer services group Logica is off 49p at £13.50.

Among the telecoms stocks, Colt Telecom is down 30p at £11.10, while Telewest Communications is off 5p at 130p.

Biotech group Celltech is also caught up in the negative sentiment, diving 5% or 69p to £11.

Supermarkets are gaining as defensive stocks, with Sainsbury's up 4p at 380p; and Safeway ahead ½p at 294½p.