Tension over North Korea and Iraq depresses market

INVESTORS returning from the Christmas break were given a jolt yesterday as the FTSE 100 Index tumbled to its lowest close since October 10.

Only three blue-chips made any ground as tension over Iraq and North Korea hit already frayed nerves in the City.

With little support from markets on Wall Street, the Footsie ended a dismal day down 112.7 points at 3829.4 a drop of nearly 3%. Banking and drug stocks were among the heavy fallers, as were high street retailers as signs of a subdued Christmas on the high street began to emerge. And with just 488 million shares changing hands, analysts are expecting a depressing end to the year in the City next week.