16:48: The FTSE has closed at 5040.76, a fall of 1 per cent for the day and over 5 per cent for the week.
Other European markets also experienced losses amid concerns of a global economic slowdown with the Cac 40 down 2 per cent and the Dax down 2.2 per cent on Friday.
The Dow Jones in the US is down 0.4 per cent at 16.48.
15.07: The FTSE 100 is down 1.3 per cent to stand at 5023 as fears continue about a global economic slowdown. Meanwhile, the US market has also opened lower with the Dow Jones falling over 1 per cent in early trades.
12.03: The FTSE 100 has fallen by 2.7 per cent this morning to stand at 4952.11. The Dax and the Cac 40 are down 4 and 3.4 per cent respectively.
10:49: The FTSE 100 now stands at 4,986, a fall of over 2 per cent. Biggest fallers include IMI, Tullow Oil and Lloyds Banking Group, all of which are down more than 5 per cent from their opening price.
8.52: The FTSE 100 has gone below 5,000 in early trades. The index is currently 4,970, a fall of 2.4 per cent.
8.40: The FTSE 100 has continued to fall in early trades as fears over the global economy continue to grow.
The blue-chip index stands at 5053 after falling almost 0.8 per cent in early trades, while in Europe the Cac 40 and the Dax were down 2.2 and 1.5 per cent respectively.
The news follows on from yesterday’s 4.5 per cent fall in the FTSE 100 – the biggest single day fall since November 2008 -on the back of fears about a double dip recession and poor manufacturing data in US.
In the US, the Dow Jones endured a torrid day of trading, having fallen by almost 3.7 per cent by its close, while the S&P 500 fell 4.5 per cent.
Meanwhile, Asian stocks have fallen after fears about a global economic slowdown. South Korea’s Kospi dropped 6.2 per cent, while Japan’s Nikkei 225 and Australia’s ASX indexes shed 2.5 per cent. The Hang Seng fell 2.60 per cent.
Yesterday also saw the UK and US benchmark borrowing costs fall to their lowest levels in decades. The UK 10-year gilt yield dropped to 2.24 per cent, their lowest point since 1899, according to Bank of England data. While 10-year Treasury bond yields fell to 1.97 per cent, their lowest point since 1950.