Market Update: FTSE takes a further tumble

The FTSE 100 was down 145.66 points at 5090.6 and the FTSE 250 fell back to 8458.84, down 294.17 points, at 12:04 pm.

The London market tracked overnight losses on Wall Street and in the Asian markets - investors sold on concerns about the $700bn US bailout plan, the details of which are still being thrashed out between the executive and the legislative branch in Washington.



"The market is in no mood to wait," said on market source. "There are some raw nerves out there and the faster this plan is put together, the better it is for market confidence."



The latest set of unsecured lending and mortgage data from the British Bankers Association also sullied sentiment this morning.



"This is a really dismal set of mortgage data," said Howard Archer, chief European & UK economist at Global Insight. "The BBA reported that the mortgages approved for house purchases slumped to a record low of just 21,086 in August. This was the lowest since the series started in 1997 and down a massive 64 per cent year-on-year from 58,564 in August 2007, when mortgage lending had already started to slow."



"[This data] graphically highlight[s] that housing market activity continues to be throttled by stretched affordability and tight lending conditions… the current financial sector turmoil is likely to deepen the pressure on housing market activity through further tightening [of] credit conditions and [by] exerting upward pressure on interest rates."



The banking sector was the focus of the selling and HBOS was down 12.15 per cent or 25.4p at 183.6p despite the FSA's ban on the short selling of financial stocks. Bradford & Bingley was down 14.16 per cent or 4p at 24.25p and Lloyds TSB eased back to 253p, down 8 per cent or 22p.



London Scottish Bank, which was the subject of the first short selling disclosure under the new FSA rules, was down 2.54 per cent or 0.15p at 5.75p after Timothy Babich's Fortelus Capital said that, as of last Friday, it had short position in 5.33 per cent of the company's stock.



Moving up...



There was little activity on the upside this morning. Defensive tobacco and pharma stocks were the only notable risers on the FSTE 100 - Imperial Tobacco was up 13p at 1743p, British American Tobacco gained 14p to 1782p and Shire was up 2p at 913.5p.



Moving down...



At the other end of the benchmark index, Man, the London-based hedge-fund group, lost another 12.8 per cent or 55.5p to 378p as traders speculated about the impact the short selling ban might have on the hedge-fund business. Man, which was not included on the FSA's list of securities protected from short selling, was also mentioned as a possible target for bears still keen on shorting financial stocks.



Elsewhere, the heavyweight resource stocks fell back as the oil price gave back recent gains and the Eurasian Natural Resources Corporation was the weakest, down 89p at 597.5p. Anglo American was down 204p at 2123p and Vedanta Resources fell back to 1565p, down 139p.

Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
Arts and Entertainment
Inside the gallery at Frederick Bremer School in Walthamstow
tvSimon Usborne goes behind-the-scenes to watch the latest series
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
newsThe industry's trade body issued the moratorium on Friday
News
Winchester College Football (universally known as Winkies) is designed to make athletic skill all but irrelevant
Life...arcane public school games explained
PROMOTED VIDEO
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
Silvia says of her famous creation: 'I never stopped wearing it. Because I like to wear things when they are off the radar'
fashionThe fashion house celebrated fifteen years of the punchy pouch with a weighty tome
News
i100(and it's got nothing to do with the Great British Bake Off)
News
Angelina Jolie with her father Jon Voight
peopleAsked whether he was upset not to be invited, he responded by saying he was busy with the Emmy Awards
News
Bill Kerr has died aged 92
peopleBill Kerr appeared in Hancock’s Half Hour and later worked alongside Spike Milligan and Peter Sellers
News
news It's not just the world that's a mess at the moment...
Sport
footballPremiership preview: All the talking points ahead of this weekend's matches
News
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
people
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
News
i100
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
Life and Style
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Data Scientist (SQL,Data mining, data modelling, PHD, AI)

£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...

SAS Business Analyst - Credit Risk - Retail Banking

£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...

Project Manager - Pensions

£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...

KYC Analyst, Birmingham - £200-£250 p/d

£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone