FTSE 100 enters bear market territory

The FTSE-100 has joined Frankfurt's DAX and Paris's CAC-40 stock markets in bear market territory, a sign of large decline over a period of at least two months.

This morning, the FTSE-100 was down 2.2 per cent at 4959.34, the first time it is has dipped below 5000 since July 2010. The blue-chip index has fallen 13 per cent since the beginning of August just over a week ago.

The slump is being caused by the evolving sovereign debt crisis in the eurozone, economic uncertainty in the US following a last minute debt ceiling deal, and the threat of a second global recession.

In London and elsewhere in the UK, there has been heavy rioting, looting and unrest in the streets, further denting investor confidence in the country's prospects.

Read a full report at the Wall Street Journal (subscription). ·