FTSE 100 slumps in early trading

Monday, 02 February 2009 12:00

The FTSE 100 slumped over two per cent in early trading, led by further falls in the banking sector.

Shares in Barclays dropped by 8.01 per cent by 09:18 GMT, after Moody's cut its credit rating.

HSBC also fell, by 5.75 per cent, while Royal Bank of Scotland was 4.55 per cent lower.

Mining stocks also fell, with Xstrata down by 5.09 per cent and Kazakhmys down 3.24 per cent.

Few stocks were trading higher this morning. Rio Tinto shares rose 4.45 per cent, British American Tobacco shares rose 0.53 per cent and BAE Systems was up 0.06 per cent.

In the US, the Dow Jones index closed 1.82 per cent down, while in Asia, Japan's Nikkei 225 dropped 1.5 per cent as fears over the recession sparked market slumps worldwide.

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