Market overview: FTSE 100 down 348
Monday 06 Oct 2008

1652: The FTSE 100 slumped to levels not seen since 2005 but did manage a minor rally at the close to keep the index's percentage loss on the day below 7%. Chancellor of the Exchequer Alistair Darling once again claimed the government will “do whatever is necessary to maintain stability”, but stopped short of announcing fresh measures to tackle the credit crunch. Miners and banks were worst affected by the wave of heavy selling, with oil stocks also out of favour. Despite the fall in crude prices British Airways was another heavy loser on fears it may miss revenue targets. The FTSE 100 was down 348 at 4,632.

1609: Investors did not need much invitation today to sell off mining stocks but UBS has provided extra incentive, downgrading its recommendations on Antofagasta, Kazakhmys, Lonmin and Vedanta while trimming its price target on Fresnillo from 550p to 360p and cutting its price targer on Xstrata to 2,700p from 4,600p. Hopes of a late rally in London look like being dashed, as shares continue to slide. The FTSE 100 is down 393 at 4,587.

1528: London is still fighting s losing battle and gets no help from Wall Street where the Dow Jones has dropped below 10,000 for the first time since 2005. Kazkh miners Kazakhstan and ENRC both lose around a quarter of their value in a single day on fears over slumping demand for minerals in the event of a global recession. The HBOS revival, which took place last week on increased confidence that the Lloyds TSB take-over would happen, has come to a shuddering halt, with the shares down by about one-sixth. The FTSE 100 is down 334 at 4.646.