Friday 2nd November 2007
The FTSE 100 UK share index slumped in early trading, reflecting a similar drop in Wall Street prices.
Financial stocks in the US fell on Thursday after the countrys central bank indicated that future interest rate cuts are unlikely, reports Reuters.
Among the biggest losers were American International Group with a six per cent drop in prices and Citi, which fell by seven per cent.
Having closed at 6,586.10 on Thursday afternoon, the FTSE 100 opened for Friday trading some 23.10 points down, according to Reuters.
This deficit increased by a further 44.50 points in early trading, followed by a partial recovery from the low point of 6,518.50.
Global stock markets have faced turbulence recently, with fears of another Black Monday driving prices down on the 20th anniversary of the event on October 19th.
French newswire Agence France-Presse asserted that the former slump was a result of a "jittery" response by investors to poor corporate earnings and the credit crunch.
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