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£31bn wiped off FTSE

More than £31bn has been wiped off London's biggest companies as investors rushed for the exits on renewed fears of a lengthy global recession.

The FTSE 100 Index sank 3.3% to 3,875 -its lowest close since the depths of the financial crisis in mid-October -as markets plunged around the world.

There were heavy falls in Asian markets and the Dow Jones Index fell as US employment claims hit a 16-year high.

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