FTSE 100 plunges 2.5% as Europe woes rattle investors

Updated 9.00am: The FTSE 100 sank more than 2.5% to dip below 5,000 again in early trading as concerns over Europe's debt problems hit global markets.

The index was down 2.58% or 130.91 points to 4,938.70 as UK investors reacted nervously to falls in the US overnight where shares plunged to their lowest level since February. All the shares in the FTSE 100 are down, led by miners. Eurasian Natural Resources fell 5.28% to 923.5p, Xstrata dropped 4.69% to 912.1p, while Kazakhmys declined 4.53% to £10.75 and Rio Tinto was down 4.51% to £28.26. Meanwhile, the single currency was also under renewed pressure, weakening for a second day against the US dollar. Yesterday the euro fell more than 1.5%, dropping from $1.2376 to $1.2346. I...