The FTSE-100 yesterday skidded to the end of its worst week in more than six years on the back of more global economic fears, falling oil prices and a jump in the US unemployment rate � all of which conspired to send stock markets elsewhere tumbling.

The FTSE-100 yesterday skidded to the end of its worst week in more than six years on the back of more global economic fears, falling oil prices and a jump in the US unemployment rate - all of which conspired to send stock markets elsewhere tumbling.

The index of blue-chip UK companies closed down 121.4 points, or 2.3%, to 5240.7, marking the end of a miserable week on both sides of the Atlantic and across Europe.

The Footsie has plunged nearly 7% over the past three days, driving it back into the bear market territory it last visited in July.

The demise was sealed by weak jobless figures from the US, where unemployment surged to 6.1% in August, its highest level in five years, making it clear the erosion of the job market had accelerated over the summer.

Eight months of consecutive American job losses was the clearest signal yet that the US economy had given way to recession.

Meanwhile, European stocks fell more than 2% across the board, capping their biggest weekly decline in more than five years while US stocks fell for a fifth straight day - although they pared bigger early-session losses.

The US jobs report served as bait to markets across Europe. The Paris CAC-40 shed 2.5%, the Xtra DAX in Frankfurt tumbled 2.4% and Madrid's Ibex plunged 3%.

In New York, the Dow Jones Industrial Average fell 100 points after the release of the report, but recovered in later trading and ended the day up 0.3%, or 32.73 points at 11,220.96.

However, underpinning the decline in global stocks, over and above the lacklustre US jobs report, was the continuing fear of growing economic weakness worldwide, leading investors to cut their appetite for riskier assets and buy safe-haven debt.

Evidence of slowing global demand helped push crude oil down to a fresh five-month low and hammered industrial metals after a hefty rise in copper inventories triggered a sell-off.

Oil prices sank below $106 a barrel as the jump in the US unemployment rate signalled to traders that Americans might keep pulling back their energy use to save money.