FTSE 100

US hedge fund giants looked to technology stocks in the second quarter but some big names have been left nursing heavy losses after moving back into US financials ahead of the market crash.

The UK's index of 100 leading shares fell 2.76% to below 5,000 this morning, as global markets showed no signs of shaking off fears the West is heading back into recession.

US manufacturing data has sent markets plunging again, with the S&P 500 down 4.5% and the UK and Europe also tumbling.

European markets have fallen further into the red in mid-morning trading on the back of recessionary fears, with the FTSE 100 suffering triple-digit losses.

VALUE AMID VOLATILITY

US investors jettisoned shares in early trading following a warning from consumer giant Walmart, piling on the pressure following weaker than expected German economic growth.

Updated: The FTSE 100 got off to a weak start on Friday but stablised by mid-morning following efforts in several European countries to calm volatility in share trading.

Bulls triumph over bears, Fed freezes short-term rates, and pension funds take a beating from stock market turmoil...our round-up of the news from the nationals.

The FTSE 100 climbed this morning and Asian and US markets rallied strongly overnight as the Federal Reserve announced it would hold interest rates at close to zero until 2013.

The FTSE 100 has entered bear market territory, having now fallen 20% from recent highs after the index lost as much as 5% in early trading on Tuesday.