The FTSE closed today with triple-digit losses as George Osborne's assertion Britain is out of the financial "danger-zone" failed to lift investors fretting over the euro debt crisis.
London's leading index closed down 2.08%, or 117 points, to 5,550 as fears abound Portugal and Spain are next in line for a bailout following the recently agreed €85bn EU/IMF rescue package for Ireland.
Top of the loser's board was Petrofac, down nearly 6%, followed by Cairn Energy and Old Mutual, both over 4% in the red.
Barclays and HSBC were the only stocks to register gains in a reminder that banks had initially led the FTSE to early morning gains as investors welcomed completion of the Irish bailout package.
Earlier this afternoon, Chancellor George Osborne said in his autumn statement the UK is firmly set on a path of sustainable economic growth after the OBR upwardly revised the country's 2010 GDP growth forecast from 1.2% to 1.8%.
But the upbeat message failed to have an impact on the markets as euro contagion fears take centre stage.
The FTSE's woes are mirrored throughout Europe, with France's Cac 40 and Germany's Dax both down over 2%.
Across the Atlantic, the Dow is down nearly 2%, with Hewlett-Packard leading the slump.
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