London slumps on Wall St holiday hangover

The FTSE 100 Index slumped by 5% today after last week’s spectacular gains were erased by a post-holiday hangover on Wall Street markets.

Worries over the extent of American consumer spending over Thanksgiving weekend added to an earlier sharp reversal for mining stocks on European markets. Poor economic data, including a 26-year low for manufacturing activity in the United States, meant global recession fears continued to haunt investors.