Stocks plunging for a fifth day

By This Is Money
Updated: 09:24 EDT, 5 March 2007

London's FTSE 100 index of leading shares today dived below the psychologically important 6000 level for the first time since last October - kicking off what is likely to be another week of turmoil for investors.

Following a further slump in Asian stocks, the Footsie took an early hit, plummeting 116 points to 5999.

But it recovered slightly to be down 92.8 at 6023.4. Japan's Nikkei 225 lost 3.4% overnight, the Shanghai Composite closed down 3.5% and the main Indian market fell 3.6%. Hong Kong was off 4%.

Albert Edwards at Dresdner Kleinwort told clients: 'We believe the long and widely awaited equity correction is upon us.'

Last week, the FTSE 100 fell 5%, removing £80bn of shareholder value from top British companies.

In the US, the Dow fell 4.2% over the week as rumours persisted that some large American banks are facing dramatic losses on mortgage loans.

Other European markets followed the Footsie down.