The British stock market faces the prospect of further hectic trade next week, following a dizzying plunge over the past five days that was sparked by concerns of a new global economic downturn. The FTSE 100 index of leading shares slumped 5.62 percent over the week to finish at 5,066.81 points on Friday.
Global markets were hit by a multitude of negative news, notably a warning from the US Federal Reserve that the world's biggest economy faced the prospect of a slowdown.
On Thursday alone, the FTSE 100 shed 4.7 percent or 246.8 points - its largest points fall since November 2008. It meant that the index lost £64 billion of its value in just one day's trade. Losses were also driven by weak Chinese and eurozone economic data, and the stubborn debt crisis that has plagued the European single currency area, a key trading partner of Britain.
The Fed warning piled further misery on markets that were already reeling from the ongoing Greek crisis, which analysts fear could end with Athens defaulting and another global financial crisis.
"A line needs to be drawn under Greece at some point," said ETX Capital trader Manoj Ladwa. "The most likely option is for it to be able to default on its debt."
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