UPDATE: FTSE follows US deeper into red

Heavy losses in the battered US markets have spread to the UK and sent the index of 100 leading shares down more than 3%.

The FTSE 100 was down 171 points or 3.19% to 5,079.58 as UK investors reacted to sell-offs in the US following the first opening bell after Standard & Poor's downgrade of the country's credit rating. In a move which has divided commentators and investors, S&P's became the first ratings agency to downgrade the US' prized AAA-rating. In response Wall Street opened lower, with the Dow Jones off 2% or 227 points, at 11,217 points, and the S&P 500 down 1.8% or 21.8 points, at 1,177.5. By 4.15pm the Dow had dropped 337.78 points to 11,106.83, a fall of 2.95%. Shares across Europe also r...