Recession fears hit shares
The FTSE 100 Index tumbled more than 7% into the red as recession fears returned to haunt global stock markets.
The sell-off saw a dramatic reversal of the FTSE's two-day relief rally after the banking bail-out plan, leaving it down 314.6 points, at 4079.6.
Stock markets across Europe also closed heavily down, with France's CAC 40 and Germany's Dax down 7%. The US Dow Jones index fell nearly 4% in early trading.