As a direct result, the FTSE100 index plunged by almost 8 per cent in the largest one-day fall since the 1987 crash. On the same day, Irish and French markets fell by 9 per cent, the German market declined by 7 per cent and the Dow Jones closed at a four-year low.

By the middle of the week, the Government had announced an unprecedented £500bn emergency rescue plan for the banks, in order to prevent a full-scale meltdown on the financial markets. This, combined with a co-ordinated move by the US Federal Reserve, the Bank of England and the European Central Bank to cut interest rates by 50 basis points, temporarily stabilised global markets.

Towards the end of the week, global equity markets were driven by deepening concerns that the world's economy was heading for recession, leading to significant market falls across all continents. Intensifying investor demand for "safe haven" investments saw government bonds strengthen and gold prices surge above $925 an ounce, the highest level since July.

The price of crude oil dipped below $83 a barrel for the first time in almost a year and on the currency markets the pound dropped below $1.70, close to a five-year low.

Tolent plc, which operates across the construction sector providing services in building, civil engineering and property development, informed the market that, because of contract delays, both revenue and profits for the second half of the year ended December 31 will be lower than expected. The company stated that negotiations in relation to contracts valued at £70m were expected to reach a conclusion over the next few weeks.

The announcement was not well received by the market, resulting in the company's share price plummeting by more than 20 per cent, to its lowest levels since early 2003.

Pressure Technologies, the Sheffield-based manufacturer of gas storage vessels for use in the shipping, oil and defence industries, announced that it had experienced stronger than expected trading in its fourth quarter. Consequently, the AIM listed company now anticipates its results for the full year ending September 27, to exceed market expectations.

Northern Foods, the Leeds-based supplier of chilled, bakery and frozen foods to the major retailers, said in its latest trading statement that the group had delivered a 3.9 per cent rise in underlying sales for the six month period to September 27 and was on target to deliver full-year pre-tax profits in-line with market expectations.

Cranswick, the Hull-based premium pork supplier reported trading figures for the six months to September 30, which were broadly in-line with management expectations.

Christopher Hynes Investment Manager at Brewin Dolphin, Leeds