FTSE continues to fall

War in Iraq continued to dominate trading on the London Stock Exchange as fears of a protracted conflict knocked investor confidence.

The FTSE 100 Index extended its early fall into negative territory, losing 49.9 points at 3743.2 by mid-morning after an overnight decline in the Dow Jones Industrial Average.

Dealers are expecting Wall Street to open lower this afternoon as investors focus on news from the Gulf.

In London, a host of sectors were under pressure during early trading, with media stocks leading the Footsie lower.

Advertising giant WPP Group topped the fallers board with a 15.25p loss to 347.525p. Reuters fell 2.5p to 108p and Granada slipped 1.5p to 61.75p.