Going into the final minutes of trading, the FTSE continued its five-day descent, dropping by 1.14 % to 3988.32

Early in the afternoon, the UK’s leading blue-chip index hovered just above the 4000 mark. But news that the Bank of England intends to implement quantitative easing measures plunged the index below the watermark. Bank losses have not helped, and financial institutions have been today’s biggest losers, with both RBS and Legal & General losing more than 10% of their share value. With an increasing number of high street and industry names also publicising their woes, few are putting their money on the FTSE’s fortunes heading back into the black. 

US markets also dropped slightly on opening – with news that housing starts are now a non-starter. The Dow lost 1.51 points or 0.02%. Faced with a tidal wave of repossessions, investors will be waiting to see whether the $75 billion pledged by the government to prevent repossessions will prove a sufficient barrier.

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