FTSE closes at 6289.3

The FTSE 100 Index has closed 74.6 points down at at 6289.3.

Mortgage bank Northern Rock led the fall as it became the UK's first high profile victim of the global credit crunch.

But the FTSE was helped marginally in late trading by better-than-expected data on US factory output and consumer confidence, which regained some of the losses seen earlier in the day, when the market dropped by 154 points at one stage.

The latest evidence of the impact of tightening credit markets sent Northern Rock's shares tumbling with the revelation hitting other banks and housebuilding stocks in the sell-off.

Newcastle-based Northern added that its annual profits would be up to £147 million lower than City expectations as it announced the emergency funding facility, sending shares down 201p to 438p by the close.

Barclays was down 19p at 596p, even though it sought to ease market worries with a reassuring trading statement, which it issued ahead of a meeting of its investors to approve the planned takeover of ABN Amro. Shareholders later voted to back the deal, with 90 per cent in favour.

Investors also rushed to sell housebuilding shares, amid fears that the crisis could cause a slowdown in the property market.

Persimmon was down 72p at 1016p, while Barratt Developments fell 41p to 829.5p.

Retail stocks were affected by signs of a further easing in consumer confidence.

Argos and Homebase owner Home Retail Group was down 15.25p at 399.5p, Next dipped 80p to 1920p and Marks & Spencer fell 216.5p to 597p.

The biggest risers were Reckitt Benckiser up 41p at 2799p, Reed Elsevier up 6.5p at 608p, Smiths Group up 6p at 1009p and 3i Group up 3p at 1004p.

The biggest fallers were Northern Rock down 201p at 438p, Shire down 92p at 1154p, Alliance & Leicester down 64.5p at 873p and Persimmon down 72p at 1016p.

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