A week of heavy falls for the FTSE 100

The FTSE 100 fell nearly 3 per cent today as concerns continued to escalate over the eurozone debt crisis and the strength of the US economic recovery.

The blue-chip index fell sharply in early trades losing as much as 3.5 per cent by 8.40am, only to rebound after US unemployment figures were better than expected. The US economy created 117,000 jobs in July, according to the US Labor Department. The overall unemployment rate in July fell to 9.1 per cent from 9.2 per cent.

At close, the FTSE 100 index stood at 5247, a fall of 2.7 per cent for the day. It has fallen nearly 10 per cent since Monday morning.

Asian markets had slumped overnight with Japan’s main index down 3.7 per cent and Hong Kong’s 4.6 per cent lower. In the US, the Dow Jones fell 4.31 per cent by its close on Thursday.