FTSE plunges as poor GDP data revealed

The FTSE 100 fell sharply today, on continuing fears that the world is entering a steep economic downturn.

In London, indices declined after the UK government announced negative GDP growth of 0.5 per cent for the last quarter.

This drags annual growth down to 0.3 per cent – and is the lowest three-month reading since the early 1990s.

The FTSE closed at 3858.90, 228.93 points or 5.60 per cent down on the day.

In New York, weak corporate data also led to steep drops, with the Dow Jones trading 250.73 points, or 2.88 per cent down at 16:30 BST.

Earlier, Tokyo''s Nikkei 225 had closed 9.6 per cent off on the day to a new five-year low.

Christian Gattiker, head of equity research at Bank Julius Baer in Zurich, told Bloomberg: "It''s difficult to have any words for this situation right now.

"The panic levels are now quite unseen."