Investors are reeling from a fresh slide in London share prices.
The FTSE 100 Index had shown signs of stabilising after Tuesday's slump of 148.6 points, but a poor reaction to weak economic data from the United States caused the top flight index to close 114.6 points lower at 6171.5.
More than £64 billion has now been wiped from the value of blue-chip shares in the space of two days.
Tuesday's slump had been the biggest one-day drop in almost nine months, as markets across the globe plunged in reaction to speculation that China may put in place measures to curb its economic growth, compounded by warnings from former US Federal Reserve chief Alan Greenspan that the United States may be on the verge of recession.
The FTSE 100 Index finished the day back at a level not seen since the start of the year as it lost impressive recent gains that had pushed it to six year highs.
An earlier announcement that the US GDP figures had been revised down created more jitters among already nervous UK investors. Disappointing news from a number of corporates further spooked the London market.
Retail analyst Nick Bubb at Pali International stockbrokers suggested the news may be an indicator of a wider slowdown in consumer spending. And David Jones, chief market analyst at CMC Markets said the London market was "overreacting" after Tuesday's concerns over China and the US. He said: "There's incredible nerves after yesterday and massive volatility, with general confusion in the market."
Markets worldwide plunged on Tuesday after rumours emerged that China may introduce a range of measures to curb its economy, with fears interest rates could rise and the authorities may introduce a 20% tax on stock investments.
Britain's company pension funds suffered amid Tuesday's market dive, with the combined deficit for 200 of the UK's largest pension schemes rising by £11 billion to £45 billion, according to Aon Consulting.
The pensions gap widened by the most in one day since September 11 2001, although Aon stressed it was still well below the levels seen a year ago when the deficit stood at £70 billion.
