FTSE hovers around 4000 as Wall St opens lower

At 3.40pm, the blue-chip index had slumped to 4,101.43, a drop of more than 213 points, or 4.86%. European markets were sent into freefall this morning following the worst one day slump in Tokyo since 1987 and a seventh straight day of losses on Wall Street. The UK’s financials are being punished – with HBOS down more than 13.9% and the Royal Bank of Scotland approaching a 14.06% deficit. The only winner is Lloyds TSB 2.36%. On the continent, Frankfurt’s Dax is 6.13% in decline and Paris’ Cac 40 is 6.03% below. Wall Street opened lower on Friday as G7 ministers meet to thrash out so...