Shell-shocked investors have suffered more losses as London's top shares index fell below the psychologically important 5,000 mark.

Global recession fears continued to plague the FTSE 100 Index which, after posting slight gains in early trading, fell more than 1% into the red.

Britain's top 100 companies lost £64 billion from their value on Thursday after a gloomy outlook from America's central bank, weak Chinese and eurozone economic data and the enduring sovereign debt crisis damaged investors' confidence.