US plan delay hits UK stocks

UK stocks finished down, with concerns over delays to the US economic weighing heavily on investor sentiment.

The benchmark FTSE 100 shed 108.55 points to close down at 5,088.47, while the broader FTSE 250 was also down by 160.21 points at 8,274.44.

Losses followed in the wake of ongoing debate in Congress over provisions of the $800 billion package which is intended to restore confidence in the beleaguered financial US sector and has the backing of George Bush.

Howard Wheeldon, senior strategist at BGC Partners, told the Bloomberg news agency: "The bailout plan seems to have been watered down and the markets'' big concern is that this may make it even harder to implement."

On Thursday bluechip stocks had risen by over 100 points after the Federal Reserve''s initial outline for the package was unveiled and appeared to be set for congressional approval.

A similarly sharp rise had also been experienced by the Dow Jones Industrial Average.