BREAKING NEWS - "Systems now operational" 16:00 BST

15:45pm BST

"We are still working to achieve connectivity" - LSE spokesperson

"A bloody disaster" was how one leading city trader described today's computer problems at the London Stock Exchange today.

The London Stock Exchange has been suspended after a massive computer crash on one of the most frantic days of trading this year.

No orders are being entered and customers are fuming after an 'overload' on the system.

Hours after US mortgage bail out

Bosses at the second largest stock exchanges in the world were left red faced just hours after a £3 trillion US government bail-out of mortgage lenders meant to shore up global finances.

A spokeswoman at the LSE told thelondondailynews.com that there were "issues of connectivity" and there would be a "process of auctions" as the system comes back online. There is currently no time scale in place.

Troubled lenders Fannie Mae and Freddie Mac, guarantors of almost half of mortgages in the US, were effectively nationalised at the weekend.

Three per cent surge before crash

The news from across the Atlantic had bolstered trading; before the exchange crashed the FTSE 100 had surged by 3%.

Traders are switching to Frankfurt and other continental exchanges to take advantage of unprecedented American intervention.

There were reports of technical difficulties earlier this morning as traders who bet on further falls on Friday rushed to close their positions.

More to follow.