FTSE plunges further at market close

The London market plunged more than 2% for the second successive session today as sky-high oil prices and fears for two US mortgage giants sent shockwaves through the City.

Concerns over the future of Fannie Mae and Freddie Mac – which manage half of the US’s 10 trillion dollar mortgage market – helped the drag the FTSE 100 Index down 145.2 points to 5261.6 – a 2.7% dip.