Footsie and Dow drop as jobs dive in the States
Shares fell tonight after yet more grim news on the US economy.
The FTSE 100 index tumbled 29.8 to 4929.7 despite having spent much of the day back above the 5000 mark.
However, Wall Street opened sharply down, falling even further later when figures were issued showing unemployment rising sharply and factory orders falling.
As London drew towards a close, the Dow Jones Industrial Average was down 214.8 at 10,616.3.
The fall in the Dow added pressure on the US Congress to approve the $700 billion bailout of the US financial sector.
Hopes are riding high among investors that the plan rejected on Monday would be passed. However, even the most optimistic were cautious.
"I'm not betting anything here because I don't know what the House is going to do," said Paul Mendelsohn at Windham Financial Services in Vermont. "If this bill doesn't pass in the House, it's game over."
The Senate, which approved a revised version of the bill yesterday, hope their sweeteners will be enough to carry it through Congress at a vote likely to be held tomorrow night.
