FTSE falls to three-year low as oil price plunge rattles markets

Expected interest rate rise in US weighs heavy on investors as oil price nudges a new 11-year low

The FTSE 100 has fallen to a three-year low as global markets dropped sharply again, with investors unnerved by a further plunge in oil prices and the prospect of a US interest rate rise this week.

In volatile trading, London's leading index lost 78.72 points or 1.32% to 5874.06 on Monday, its lowest closing level since early December 2012 and its eighth successive daily decline.