Black day as FTSE slumps to tune of £48bn

The FTSE 100 Index suffered its biggest points fall for five years today as trading screens turned red on renewed fears over the US economy and credit markets, wiping a mammoth £48bn (€71.6bn) off shares.

Despite early gains from energy companies, London responded to heavy opening losses on Wall Street amid persistent fears over the state of America's sub-prime mortgage market and the wider economy.