Poor day for FTSE

The FTSE 100 Index suffered a sharp reversal of fortunes today as heavy falls in the US saw the London market undo early gains to lose almost 1%.

A US government aid pledge for the banking system and reports of a major overhaul at internet giant Yahoo! spurred falls across Wall Street, with financial and technology stocks leading the way. The drop was mirrored in London where the Footsie closed 38.3 points lower at 3850.7.