The FTSE 100 index of leading shares closed down for the ninth consecutive day last night, a record since the index began in 1984.

Blue chip shares lost 55.8 points to close at 3622.2, its lowest level since December 19, 1995, as continuing fears over war and the economy sent investors running for cover.

Market strategists now fear the index could fall through the critical 3,600 level and warn today's trading will be crucial.

A host of heavyweight shares weighed on the market yestreday, with banks, telecoms and oil stocks all heading lower.

Bob Semple, strategist at Deutsche Bank, said: "The thing that is puzzling about the UK is economic data has not been that bad.

"London is having a tougher time than elsewhere. It is unclear why we are being singled out."

Wednesday's slump of 58.7 points extended the Footsie's run of consecutive falls to match the unprecedented eight-day losses endured in December.

During the past nine days, the index has shed almost nine per cent of its value. This compares with a peak of 6,930 touched in December 1999 at the height of the dot.com bubble. Investors fear the looming war would end up costing the British economy dearly and damage the global economy.

Hilary Cook of Barclays Capital said: "There are just no buyers coming into the market.

Nine days on the go is not expected and implies a continual drip of bad news. However much you argue shares are cheap, there are no buyers."

Gold prices continued to rise as investors rushed for a port in the storm.