UPDATE: FTSE drops 3.4% to close below 5,400

Sharp falls in bank and mining stocks have dragged the FTSE 100 down a further 3.4% today as global markets continued to struggle.

The FTSE 100 closed down 3.4% at 5,393, its lowest level since last September. The index is now 11.5% down from its February high of 6,091, and has dropped 8.8% since mid-morning on Monday, when the index reached 5,912 in the aftermath of the US's agreement to raise its debt ceiling. Worse than expected results pushed Lloyds Banking Group down 10% by the close to 35.74p, with Barclays and RBS also falling significantly. The FTSE's earlier fall below the 5,500 mark was also driven by poor performance among miners - Vedanta was down in afternoon trading by over 9% at 1,485p, with Xst...