Update: Only handful of winners as FTSE falls below 5,000

The UK's index of 100 leading shares fell 2.76% to below 5,000 this morning, as global markets showed no signs of shaking off fears the West is heading back into recession.

There were only a handful of winners by 11am with the FTSE down 140.73 points to 4,951.50.

Software firm Autonomy was the main bright spot, up 75%, after it agreed to be bought by US giant Hewlett-Packard for £7.1bn ($11.7bn). Tullow Oil, Lloyds and GKN were amongst the biggest losers today.

This morning's fall adds to yesterday's losses, when frenzied selling wiped £62bn off the value of the FTSE 100, which dropped 239.37 points to close down 4.49% at 5,092.23.

After heavy losses yesterday, European markets continued their fall today. The German Dax was down 3.76% to 5,392.31 by 11.00am and the French Cac fell 2.80% to 2,989.90.

Across the Atlantic, America's index of leading stocks closed down 3.68% last night, amid a global sell-off sparked by another round of weak economic data and increased fears about the eurozone debt crisis.

The Dow Jones Industrial Average closed down 3.68% or 419.63 points to 10,990.58.

A closely watched gauge of the US manufacturing sector plunged during the day, underlining fears the country's recovery had ground to a halt and adding to negative investor sentiment.

But sell-offs in the US were already well underway during European trading hours, as news emerged that at least five eurozone countries had asked the Greek government to put up collateral against their share of the latest emergency bailout for Athens.

The move suggested the eurozone countries have little confidence in the latest plans to shore up the single currency.

A report the European Central Bank made an emergency short-term loan of $500m to one struggling financial firm added to fears.

Overnight the Nikkei 225 index shed 1.3% to close at 8,943.76 points.