The index of leading shares in London fell more than 100 points on opening as investors face further turmoil.

The FTSE 100 fall came after JP Morgan Chase said it would acquire rival Bear Stearns for $2 a share - $236m - in a move aimed at averting panic.

The crisis in the US banking sector earlier sent Wall Street's Dow Jones Industrial Average down almost 200 points, or 1.6%.