Gloomy report triggers shares rout

London’s leading shares index fell 4.5% today – the 12th biggest points fall in its history – amid fears the world is sliding into a double dip recession.

The FTSE 100 Index lost 239.4 points – wiping more than £62.3bn from its value – with heavy losses for the banking sector, including taxpayer-backed banks Royal Bank of Scotland and Lloyds Banking Group.