FTSE plummets as war set to last

The FTSE 100 Index has fallen back sharply after fierce fighting in Iraq appeared to dash hopes of a short war.

After seven sessions in positive territory took London's leading shares 600 points or 17% higher, the London market opened in more sombre mood today.

The FTSE 100 Index dropped 70.2 points in early trading to 3790.0.

Traders also expected New York's Dow Jones Industrial Average to open lower this afternoon as stories filtered back from the front line.

Only four FTSE 100 seven stocks made progress this morning, including cruise operator P&O Princess which gained 1p to reach 450p.