The FTSE 100 Index slumped by 5 per cent to close down 222.5 points at 4065.5.

The top flight index added 500 points last week but investors took the recent rally as an opportunity to book profits, particularly among volatile miners.

Platinum firm Lonmin led the fallers board after a drop of 18 per cent or 155.5p to 696.5p, while Kazakhmys fell 16 per cent or 42.75p to 217p and Vedanta Resources slid 95.5p to 516p.

As well as the weaker mining sector, most retail stocks were under pressure following the release of more poor sales data from John Lewis and expectations that Tesco will post its worst sales figures since the early 1990s on Tuesday.

Stocks came off their lows towards the end of the session amid growing hopes that the Bank of England will slash another percentage point from interest rates later in the week.

With a poll of analysts ahead of Tesco's third quarter update pointing to a UK like-for-like sales growth of just 1.9 per cent, shares in the grocery heavyweight closed 2 per cent or 7.3p lower at 288p.

Sainsbury's fell 7.75p to 279.25p and Morrisons - due to post figures later in the week - slipped 4.75p to 237.75p.

The latest John Lewis weekly sales figures, which showed another 13 per cent drop in sales, unsettled shares in a number of mid-market firms.

Marks & Spencer lost 2 per cent or 5p to 220.75p, while B&Q owner Kingfisher fell more than 7 per cent or 8.9p to 110.6p and fashion chain Next declined 105p to 1003p, a drop of more than 9 per cent.

London Stock Exchange shares were down almost 3 per cent or 19p to 590p after the Times newspaper estimated the LSE had lost a quarter of its near monopoly in London business in equities to rival exchanges.

There were no FTSE risers during the session.

Losers: Lonmin down 155.5p at 696.5p, Kazakhmys off 42.75p at 217p, Vedanta Resources down 95.5p at 516p and Anglo American off 217p at 1317p.

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