Britain's leading shares tumbled 1.9 per cent today after news of a plane crash in New York sparked fears of more attacks on the United States.
The news hit a market still trying to come to terms with the economic and corporate impact of the September 11 attacks on New York and Washington and prompted a 6.5 per cent fall in British Airways.
Banks, oil and telecoms stocks were also weak throughout the day.
The FTSE 100 closed 98.0 points lower at 5,146.2, its lowest closing level for more than a week. The index tumbled as low as 5,065.3 points immediately after news of the crash, its lowest level since November 1, but it trimmed losses as reports emerged that the crash may have been due to engine failure and not a deliberate attack.
Airlines and several other industries exposed to the travel industry have struggled since September as air travel has slumped. British Airways shares fell more than 12 percent to 145p immediately after Monday's crash, but it stabilized to end down 11-1/4p at 161p.
Companies exposed to the airline industry suffered and aero-engine manufacturer RollsRoyce dropped 6.1 per cent, airports operator BAA fell 4.7 per cent and defence contractor BAE Systems was down 1.5 per cent.
UK stocks were already on the defensive before the plane crash, hit by concern that Vodafone and several other major companies could highlight the impact of the economic slowdown in a batch of results released this week.
Vodafone dipped 1.4 per cent as analysts said the company appeared likely to write down the value of some of its recent investments when it reports interim figures on Tuesday.
Financial and oil stocks were also a drag on the overall market, while some insurance companies were hit by fears they could again be exposed to insurance claims.
Banks knocked 26 points off the FTSE, as investors said another UK rate is unlikely this year.