FTSE slumps on poor US housing data

Dismal housing data from the US fuelled fears of a slowdown in global economic recovery today, rattling investor confidence and triggering a slump in stock markets.

Figures released by The National Association of Realtors reported an unprecedented drop in sales last month of previously occupied homes in the US. Total sales were down 27.2% to 3.83 million, far below the predicted 4.6 million.