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According to the Financial Times, the leading index on the UK stock exchange fell 18 points to a session low of 5,925.68 after news that GDP declined 0.5 per cent in the fourth quarter of last year.
Joshua Raymond, market strategist at City Index, said: "The GDP figure is quite simply a shock to the system and heightens fears that the coalition governments' austerity plan may well curb growth too excessively and send the UK into a double-dip recession."
He added, however, that it is important that people remember this is only a preliminary reading and is liable to change next month.
The news comes after the FTSE 100 rose by 0.4 per cent yesterday, while Germany's DAX shed 0.6 per cent.
Posted by Greg Secker
