FTSE 100 falls hard as US bailout plan rejected

The US bailout rejection caused havoc with the FTSE 100 on Tuesday morning, within minutes of opening the index was down almost 100 points. The hardest hit on the London Stock Exchange were insurer Old Mutual and mortgage lender HBOS.

With the FTSE 100 suffering yesterday to, with the biggest one-day falls in the index’s history, sliding 5.3 percent amid the bailout talks and investors concerns on the outcome of the global economy and worries of falling into recession.

Las night Henry Paulson the US Treasury Secretary’s $700 billion bailout was rejected by Congress and caused the Dow Jones to fall the worse it has ever in history, a knock-on effect occurred around the world with Japan’s benchmark Nikkei 225 index falling almost 580 points.

Source: Telegraph