The FTSE 100 was threatening to drop below 4,000 yet again on Wednesday after dramatic early losses on Wall Street.
London's blue-chip index had fallen more than 187 points, almost 4.3%, to slump to 4,049.62. Across the Atlantic, the Dow Jones has slipped more than 350 points to 8,681.97.
Standard Chartered and Royal Bank of Scotland, among the institutions included in the Government's £37bn bail-out package, both suffered heavy losses of 13% and 11% respectively.
Only British Airways was able to report significant gains, with a 3% rise to 146.3p.
Shares slumped on Wall Street in keeping with a global sell-off on Wednesday.
Alcoa, Boeing and Hewlett Packard all suffered heavy losses, of 9%, 7% and 6% respectively, while the Bank of America was toasting a 1% gain.IFAonline
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