Markets fall as Treasury chief resigns

US Treasury Secretary Paul O’Neill’s surprise resignation today caused a short-term shake on the markets, with the dollar sliding and equities wobbling - but the FTSE 100 Index managed to close off its lows with its head above the 4,000 mark.

Mr O’Neill’s resignation was swiftly followed by the departure of economic adviser Larry Lindsey – both of whom resigned at the request of the White House amid growing concern about the US economy.