LEADING shares on the London stock exchange lost 2.6% amid new worries about Greece’s debt woes – and fears that other European nations could be swept up in the crisis.

Blue chip shares dived after ratings agency Standard & Poor’s downgraded Greece’s credit rating to junk status, while Portugal’s debt was also downgraded.

The FTSE 100 index plunged by 150.3 points to 5603.5 yesterday as markets reacted to the threat of Greece defaulting on a May bond payment deadline.

The euro also took a hammering – and the pound slumped – as traders sought a safe haven in the US dollar.