The FTSE 100 has fallen below the 6,000 point mark for the first time since August 2007 after sub-prime worries on Wall Street sparked a share sell-off.
Last night, US stocks dropped to a nine-month low partly brought on by weak retail sales and the news of Citigroup's $9.83 billion loss in the fourth quarter of 2007.
This saw the FTSE 100 falling to 5,964.40 points in the early hours of trading, from a close of 6025.80 on 15 January. Yesterday's close was at its lowest level since the credit crunch hit the stock market in mid-August.
Some of the biggest falls were from London Stock Exchange Group and Cable & Wireless.
Northern Rock shares also took a dive following the lender’s meeting and vote with shareholders yesterday and Gordon Brown’s admission that nationalisation is an option if a private sale cannot be agreed.
The FTSE 250 also dived this morning from a close of 10,031.60 points on 15 January to 6,672.70 the next morning.