The London share market continued its downard path on Thursday after losing 8% so far this week.

Renewed worries about the global economy - after the IMF refused further aid to Russia - played on domestic fears of a deeper recession.

The FTSE 100 index was down by 120 points by 1000 GMT at 5386.

"It's a grim looking world out there -- Russia, Asia and Brazil are all coming back to haunt us," said one dealer.

Shares in Reed Elsevoir, the publishing group, fell back sharply after a profits warning, while shares in Great Universal Stores were stable despite a 22% fall in profits.

GEC shares were up 15p to 466p after the company revealed better than expected results and said it was in active negotiations over a defence merger.

And shares in Bass, the hotel and brewing group, were up 19p to 832p, after a boost to profits despite the slowdown.

Scottish Power also gained on speculation that a US buyer was interested in buying into Demon Internet business.