The FTSE 100 Index closed 1% lower today as jittery investors reacted to a lacklustre start to trading in New York.

The FTSE 100 Index slid further into the red today as investors withdrew from stock markets around the world amid fears over inflation and the impact of a weak US dollar.

The FTSE 100 Index was deep in the red for a second successive session today - despite the best efforts of top flight companies BT and Vodafone.