Investors remain deeply negative on future recovery prospects, as the markets fall once more.
The FTSE 100 suffered another day of losses today, as bad news continued to pour in about the dire health of the global economy.
As of 13:45 GMT, the flagship London index stood at 3911, 2.7 percent down on the day. This is near a six-year intra-day low and is also the sixth day in seven that the FTSE has retreated.
Falls in London were matched around the world, with the Dow Jones in New York closing yesterday at its lowest level since the onset of the global credit crunch. It is now around 47 percent off its 2007 peak.
The immediate trigger for the current sell-off is unclear, but there were a raft of gloomy profit declarations and growth forecasts released yesterday from several businesses, including a dividend suspension from mining giant Anglo American. Last week's disappointing launch of the US government's $1 trillion-plus bank bailout plan has also met with a very negative reaction from the equities markets over recent days.
Joshua Raymond, Market Strategist at City Index commented: "The falls we are seeing are shattering any positivity, and this is hampering investors' ability to bargain hunt. Usually when the markets go as low as they have done, investors look for stocks on the cheap.
"However, with poor earnings set to continue and no change of market sentiment in sight, a bargain today could be an even bigger bargain tomorrow."
